Italy Set to Approve $442 Million Loan to Keep Alitalia Flying
Italy Set to Approve $442 Million Loan to Keep Alitalia Flying
(Bloomberg) --
Italy is set to approve a new 400 million-euro ($442 million) loan for failed airline Alitalia, people familiar with the situation said.
The Rome-based government will give the green light to the funding at a cabinet meeting late Monday, according to the people, who asked not to be identified discussing confidential deliberations.
The new loan throws a lifeline to Alitalia as the government continues to seek investors to relaunch the carrier. State rail operator Ferrovie dello Stato Italiane SpA and infrastructure giant Atlantia SpA said last month that it was not possible to come up with a viable investment plan for the airline.
One of the people said the government will start a new sale procedure for the company with a deadline in the first half of next year.
Foreign airlines Deutsche Lufthansa AG and Delta Air Lines Inc. have in the past shown some interest in investing in Alitalia, but plans for possible equity involvement have to date been conditioned on far-reaching, credible cost-cutting commitments.
Alitalia has been managed by state-appointed administrators since 2017 and is currently burning through a previous 900 million-euro state loan.
To contact the reporters on this story: Chiara Albanese in Rome at calbanese10@bloomberg.net;Alberto Brambilla in Rome at abrambilla8@bloomberg.net
To contact the editors responsible for this story: Chad Thomas at cthomas16@bloomberg.net, Jerrold Colten, Ross Larsen
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