UPDATE 1-Italian court orders new tender for Volare

(Updates with court ruling, text of ruling, adds background)

ROME, March 3 (Reuters) - Italy's top administrative court on Monday ordered a rerun of the 2006 tender in which Italian airline Alitalia AZPIa.MI purchased budget carrier Volare.

The court ruled in favour of an appeal by Alitalia rival Air One, which had also wanted to buy Volare. The court said all original bidders would have to be invited to submit new offers for the budget carrier.

The court said the 2006 tender was nul as it did not follow correct procedures.

Two years ago, Alitalia branched out in the low-cost market by offering 38 million euros ($57.64 million) for bankrupt Volare, which collapsed in 2004 under the weight of heavy debts and losses. (Editing by David Holmes and John Wallace)