Alitalia rushes to hide under the Italian government wing?

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A state-appointed administrator of Alitalia said that Italy’s flag carrier needed to be nationalized by the country’s government as soon as possible to remain afloat.

Giuseppe Leogrande, who was appointed Alitalia administrator by the government in December 2019, has spoken to the Parliament of Italy on October 7, 2020. Leogrande urged the government to rush to nationalize Alitalia in order to ensure the air carrier’s business continuity.

According to a statement reported by Reuters, Leongrande told the Parliament that a proper measure to keep the struggling Alitalia operational could be a new state-controlled company launch which would save the airline’s assets.

The government of Italia unsuccessfully attempted to create a new company in May 2020. At the time, the government planned to launch a new state-owned airline that should have taken the control of Alitalia. For this aim, the government allocated a €3 billion worth of financial injection. However, the COVID-19 pandemic has ruined the plans.

Despite that the European Union Commission approved a grant worth €200 million in order to resuscitate the airline and help alleviate the consequences of the pandemic in September 2020, Leongrande has allegedly requested for an additional €150 million arguing that Alitalia needed additional aid to keep afloat.

 

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