The Italian government will allocate at least EUR 3 billion for the airline Alitalia, the Ministry of Industry announced, preparing the plan for the nationalization of the airline facing financial difficulties.
The renationalization of the company was proposed in March of this year. Authorities in Rome are preparing to regain control of the air carrier after 11 years of difficult private management and three failed restructuring attempts.
From the first economic stimulus package, worth EUR 25 billion, the Government allocated EUR 500 million for the entire aviation sector, with most of the money going to Alitalia.
Alitalia has been in bankruptcy proceedings for several years and survives thanks to loans granted by the Italian state, totaling EUR 1.3 billion.
Frequently Asked Questions
Why is the Italian government renationalizing Alitalia?The government aims to save the airline from bankruptcy following 11 years of difficult private management and three failed restructuring attempts.
How much funding is allocated for Alitalia’s nationalization?The Ministry of Industry has announced a budget of at least EUR 3 billion to facilitate the state takeover of the carrier.
What is the current financial status of Alitalia?Alitalia has been in bankruptcy proceedings for several years, surviving primarily on state-granted loans totaling EUR 1.3 billion.