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Aviation History
2000
2000 - 0182.PDF
BUSINESS Meridiana sell-off may spark scramble ANDY NATIVI/GENOA ITALIAN regional Meridiana, the country's second largest car rier, is up for sale following a deci sion by the Aga Khan to dispose of his 79% holding. A sale had been under consideration for several years, although initially only a small stake was to be offered. Several European airlines are expected to bid for Sardinia-based Meridiana, which has 15% of the Italian domestic market and a foothold in Florence. Air France is a likely contender, with Lufthansa and British Airways expected to show an interest, although the lat ter is close to launching its Nat ional Jets Italia regional operation. Dutch flag carrier KLM could also bid. Last year it held talks with Meridiana rival AirOne and its close ally, Alitalia, is unable to bid because of conditions imposed by the European Commission in con nection with state aid grants. Other Italian airlines, including expan sion-minded Volare - part-owned by the SAirGroup - may also become involved. Meridiana had sales of L630 bil lion ($330 million) last year, up marginally on 1998, and carried more than 3 million passengers. It made an operating loss of L26 bil lion, but recorded a small net profit through the sale of six McDonnell Douglas DC-9-50s. It employs 1,700 people and has a fleet of 17 Boeing MD-82s and four British Aerospace 146-2 00s. Of the remaining shares, the workforce owns 16.5%, with min ority stakes held by the Cariplo bank (3 %) and other investors. • Indian Airlines to JULIAN MOXON/MUMBAI MEHAR SINGH/NEW DELHI INDIA'S NEW coalition gov ernment has announced the pri vatisation of Indian Airlines, opening one of the world's largest domestic carriers to investors. Foreign airlines will be barred from the bidding process, however. In a parallel move by prime min ister Atal Behari Vajpayee, five of the subcontinent's major airports - Bangalore, Calcutta, Chennai, Mumbai and New Delhi -will also be "sold" on leases of between 30 and 51 years. Again, however, for eign airlines - and airport opera- Indian Airlines has been cleared for privatisation
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