We hate to say it, but the financially troubled flagship airline needs to be sold or allowed to fail. It has been given plenty of chances since 2008, and now its labor unions have rejected a government-brokered deal for about $2 billion in fresh investment from Etihad.
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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Photo credit: An Alitalia plane waits on the tarmac of the Malpensa international airport, in Milan, Italy. Antonio Calanni / Associated Press