- The tender could last several weeks, because the first binding offers must be submitted by October 4 at 2 pm, at the minimum price of 290 million euros (plus VAT).
- But no carrier seems interested in buying the brand at this stage.
- “The valuation is unrealistic,” said Alfredo Altavilla, President of ITA, the new airline, which is probably the company most interested in the brand of the old company.
Base Price 290 Million
To make an offer at this stage, it requires a down payment of 40 million euro. Only persons with an air transport license or AOC (Air Operator Certificate) and a net worth of at least 200 million can join the binding.
If there are no offers equal to at least the base price, the commissioners will open a second round of binding offers.
The call for tenders, named “invitation,” provides for a second phase if there are no suitable offers in the first phase. In this case, the commissioners “will carry out the second phase of the award with the request to all the admitted subjects to present binding offers also in reduction with respect to the offered price.”
It was not said what the base price for the second round would be. The brand has a book value of 150 million in Alitalia’s financial statements. Therefore it is unlikely that it will fall below this figure.
Third Round: Discretionary Choice of Commissioners
If in the first as in the second phase there were more offers, it would next go to the raises, starting from the best offer, for an amount “not less than 10 million euros.” If the second round is also unsatisfactory, the procedure will be changed. “The extraordinary commissioners will then proceed with the sale of the brand without procedural constraints towards the economic operator they have identified,” said the announcement.
For the third round, there would, therefore, be discretion of the commissioners. In this phase, ITA could enter, which aims to buy the brand but without fainting.
“The brand will be made available to the successful bidder by December 31, 2021,” says the invitation published by the commissioners.
Communication of the Commissioners
For the 10,500 workers of Alitalia, there is, therefore, a long wait to get the balance of their salary for September. And it is not assured that in the end there is money. In an internal communication, the commissioners Gabriele Fava, Giuseppe Leogrande, and Daniele Santosuosso wrote to the employees:
“As you know, our activities included in the aviation branch are expected to end on October 14, and, therefore, we are forced to manage the company’s finance consistently with this target, taking into account that the closure of sales on August 24 generated a substantial stop in revenues.
“We are very sorry to have to inform you that the salaries of the current month will be adjusted at 50% with value on Monday, September 27, while the remaining 50% will be credited to you as soon as we have evidence of the outcome of the brand announcement, as required by the European Commission.”
In fact, the law provides that the sums deriving from the sale of assets are used as a priority to support current costs, primarily salaries.