ALERT: Italy- Government of Italy Prepares Bridge Loan to Keep Alitalia Flying (April 26, 2017)

April 26, 2017

In the aftermath of Alitalia employees rejecting a government-brokered deal of salary cuts and layoffs – cuts aimed at avoiding bankruptcy for Italy’s flagship carrier – Italy’s economic development minister is preparing a government bridge load to keep it operational for at least six months.

According to the Associated Press:

Italy’s economic development minister says that failing airline Alitalia will receive a government bridge loan to keep it operational while a new owner is sought. Carlo Calenda told Radio 24 on Wednesday that a loan of 300 million to 400 million euros ($326 million-$435 million) would keep the airline flying for six months under receivership.

Asked if German airline Lufthansa was interested in buying the company, Calenda gave a quick “I hope,” then added more cautiously, “It would be interesting to explore.”

Italy’s flagship airline is on the verge of bankruptcy after workers rejected a government-brokered deal that would have unlocked 2 billion euros in investments from its managing shareholder, Etihad, and a consortium of Italian businesses, led by Italian banks UniCredit and Intesa SanPaolo, that holds a 51-percent share.

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