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Sudden collapse of Alitalia would be a shock to Italy's economy-minister

Published 04/30/2017, 11:01 AM
Updated 04/30/2017, 11:01 AM
© Reuters. Alitalia's flight attendant is seen at the Leonardo da Vinci-Fiumicino Airport in Rome

© Reuters. Alitalia's flight attendant is seen at the Leonardo da Vinci-Fiumicino Airport in Rome

ROME (Reuters) - A sudden collapse of loss-making national airline Alitalia [CAITLA.UL] would be a great shock for Italy's economy, Industry Minister Carlo Calenda said on Sunday.

Rome has thrown the crisis-hit airline a short-term lifeline, a bridging loan of up to 400 million euros ($436 million) to see it through a process whereby an administrator will decide if it can be sold as a going concern or should be liquidated.

"It (sudden closure) would be a shock for GDP (economic output) much greater than the scenario that we are looking at: a brief period of six months covered by a bridging loan from the government so as to find a buyer who could provide services that Italians need as travelers," he said in an interview with Sky TG24 television.

© Reuters. Alitalia's flight attendant is seen at the Leonardo da Vinci-Fiumicino Airport in Rome

Rival airlines have shown little interest in buying Alitalia and creditors have refused to lend more money after workers last Monday rejected a rescue plan that would have reduced pay and cut 1,700 jobs.

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