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HomeAirline NewsItaly will invest another 400 million euros in airlines

Italy will invest another 400 million euros in airlines

The funds will be available to the airline until the end of the month after the Ministry of Economy has approved the injection.

The airline was created last year from the ashes of Alitalia, which had accumulated losses of more than 11 billion euros in the two decades before it closed.

The European Union approved that Italy would continue to support the airline, but insisted on new, smaller companies and limited public funding.

The previous government, led by Prime Minister Mario Draghi, launched a bid to sell most of the airline and in August accepted an offer from US investment fund Certares, Delta Air Lines and Air France-KLM at the suggestion of Germany’s Lufthansa and shipping group MSC. .

However, with little progress in negotiations with the Certares consortium, the new economy minister Giancarlo Giorgetti did not renew the exclusivity of negotiations with ITA at the end of October, putting Lufthansa and shipping group MSC back in the running.

The choice of Certares also displeased the airline’s chairman, Alfredo Altavilla, who fell out with the company’s board over the choice and resigned on Monday.

The Certares consortium proposed to buy 50 percent of ITA plus one share for 350 million euros, leaving the remaining shares to the Italian state.

Lufthansa and Swiss-Italian shipping group MSC, meanwhile, offered 850 million euros for 80 percent of ITA.

Lufthansa said in early November that it had a “continuing interest” in taking over ITA as part of a “genuine privatization of the airline”.

An injection of 400 million euros into the airline was already planned for 2022 and follows an initial 700 million euros invested in the company last year.

The European Commission has authorized Italy to pump up to 1.35 billion euros into the airline.

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