Greybull Capital swoops in on major Italian airline auction

Greybull Capital LLP, the London-based investment firm which owns Monarch Airlines in Luton and British Steel, is taking part in a surprise bid for parts of Alitalia, Italy’s flag-carrier airline.

The firm, an investment company which deals with medium to long-term investments in private companies, has been acclaimed for its fast turnaround of British Steel, and is among several other potential bidders of Alitalia’s aviation valuables.

The Italian airline has been put up for sale after the country’s government granted €600m (around £540m) to keep it from going under earlier this year.

Buyers close to the bidding process for Alitalia have said Greybull Capital has been keen to acquire the airline’s engineering business to integrate it with existing operations.

Given the company wins, Greybull should seek partners for some of Alitalia’s short-haul flights as it competes against rivals such as easyJet and Ryanair, which has already announced its participation in the Alitalia auction.

Since falling into administration in May 2017, Alitalia has been run by several commissioners amid such competition from low-cost rivalry and its own inflation.

Greybull also did a major deal with Boeing in 2016, although the tourism-focused airline’s future has remained desolate due to the sterling’s weakness.

However, the bidding process should be finished well before the end of 2017. The investment bank, Rothschild, is handling Alitalia’s sale.