The Italian government is ready to contribute €750 million ($930 million) towards a planned €2 billion capital increase for troubled Alitalia next year, according to the 2005 financial planning bill. The government, Alitalia and employee unions have signed an agreement giving the green light to the business plan the company proposed in late September, clearing the way for it to receive a €400 million state-backed loan. The capital increase is expected to reduce the state's stake in Alitalia from 62.4% to less than 50%.


Source: Flight International