Italy is set to approve a new 400 million-euro ($442 million) loan for failed airline Alitalia, people familiar with the situation said.

The Rome-based government will give the green light to the funding at a cabinet meeting late Monday, according to the people, who asked not to be identified discussing confidential deliberations.

The new loan throws a lifeline to Alitalia as the government continues to seek investors to relaunch the carrier. State rail operator Ferrovie dello Stato Italiane SpA and infrastructure giant Atlantia SpA said last month that it was not possible to come up with a viable investment plan for the airline.

One of the people said the government will start a new sale procedure for the company with a deadline in the first half of next year.

Foreign airlines Deutsche Lufthansa AG and Delta Air Lines Inc. have in the past shown some interest in investing in Alitalia, but plans for possible equity involvement have to date been conditioned on far-reaching, credible cost-cutting commitments.

Alitalia has been managed by state-appointed administrators since 2017 and is currently burning through a previous 900 million-euro state loan.

©2019 Bloomberg L.P.

This article was written by Chiara Albanese and Alberto Brambilla from Bloomberg and was legally licensed through the NewsCred publisher network. Please direct all licensing questions to legal@newscred.com.

Photo Credit: An Alitalia aircraft. The carrier looks as though it is going to receive another financial lifeline. Krisztian Bocsi / Bloomberg