Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Revamped Alitalia to start with 45 planes, get 1 billion euros in aid: paper

Published 03/02/2021, 04:03 AM
Updated 03/02/2021, 04:40 AM
© Reuters. FILE PHOTO: An Alitalia Airbus A320 takes off at Fiumicino International Airport in Rome

MILAN (Reuters) - A revamped Alitalia will start with 45 planes, have around 4,500 workers and get just over 1 billion euros ($1.2 billion) in state support, less than half of what was previously envisaged, newspaper La Repubblica reported on Tuesday.

Newly-appointed Prime Minister Mario Draghi met with the transport, economy, industry and labour ministers on Monday and was pushing for a speedy resolution but not at all costs, the paper said. The cabinet office declined to comment.

Under Draghi's predecessor, Giuseppe Conte, Rome had earmarked 3 billion euros for a new airline, dubbed ITA, to replace Alitalia, which has been run by state-appointed administrators since it was declared bankrupt in 2017.

According to La Repubblica, ITA will acquire all of the airline's aviation business, including aircraft and employees, and would start before the end of April to take advantage of the upcoming summer season.

Il Sole 24 Ore said the plan was to get the revamped airline flying from June 1.

Daily Il Giornale said the new Alitalia might start with 43-45 planes and 2,500-3,000 employees and could get between 1-2 billion euros in state aid.

A state-supported flag carrier, however, requires approval from the European Commission, which has asked for an open tender of Alitalia assets and is pressing for the new airline to forsake the old brand and some of its airport slots.

The government, which last week said it wanted to press ahead with nationalisation of the carrier, is due to meet with officials in Brussels on Friday, the papers added.

Alitalia could not be reached immediately for comment.

© Reuters. FILE PHOTO: An Alitalia Airbus A320 takes off at Fiumicino International Airport in Rome

($1 = 0.8326 euros)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.