Italy's Prime Minister Giorgia Meloni is set to sign off on a decree to sell an initial minority stake in ITA Airways, in a move aimed at starting a full privatisation of the state-owned carrier, three sources told Reuters.
Germany's Lufthansa is seen in pole position to enter the company's capital, the sources have said, with one adding it could buy a minority stake through a capital increase.
The previous government of Mario Draghi laid out a first privatisation decree in February under which the Treasury was bound to immediately sell a majority stake in the carrier, so a new scheme is needed to change the process.
The sources said Rome would gradually press ahead with plans to fully privatise the carrier, something that is proving a headache for the Treasury.
An exclusive period of talks with US private equity fund Certares, Air France KLM and Delta failed to produce a deal, leading to the reopening of the process at the end of November.
Lufthansa had initially partnered with shipping group MSC to bid for ITA, but MSC said last month it was no longer interested in the transaction.
