Italy’s government has approved a €400 million ($443 million) loan to troubled flag-carrier Alitalia, to provide funding while a strategy for the airline’s future is decided.
Italy’s government has approved a €400 million ($443 million) loan to troubled flag-carrier Alitalia, to provide funding while a strategy for the airline’s future is decided.
The Italian council of ministers met on 2 November to discuss “urgent measures” to ensure the continuity of Alitalia and Cityliner services.
It states that the loan is intended to allow for the completion of a corporate transfer by 31 May 2020.
The loan will fund “non-deferrable management needs” for the airline and the execution – by Alitalia’s commissioners – of strategic initiatives to make the company’s structure more efficient, it adds.
Government steps to preserve Alitalia’s operations follow the failure to secure a buyer for the airline.
Both Alitalia and regional division Cityliner remain in extraordinary administration.
Rail firm FS Italiane had been attempting to secure agreement from potential consortium partners – including major airlines – to acquire SkyTeam alliance member Alitalia, but during November it stated that the conditions to formalise a bid had not been reached.
Alitalia’s unions have been pressing the government for a long-term solution, perhaps involving nationalisation of the carrier.
