MIAMI – Following the nationalization of Alitalia (AZ), the Italian government will inject €3bn in capital for the company as announced by the Industry Minister, Stefano Patuanelli.
The carrier has already experienced a privatization and acquired government financing, but the company will now “focus strongly on long-haul routes, also with new transatlantic alliances,” said Patuanelli regarding this re-nationalization.
Money injection as part of a aid plan
As the government already gave AZ €500m in funding in April to maintain employees, fleet and routes, with this new investment the state reaffirms its position to protect current job levels at the airline.
In March, local daily La Repubblica already reported that the executive was planning an immediate intervention in the carrier consisting of €500m with a further €3bn in loans for the nationalization transition.
The company has faced 11 years of red numbers under private management and different restructuring approaches, but the pandemic crisis has exacerbated the company’s debt and sustainability problems it has since last year. AZ ended 2019 with €300m total losses from its €1.3b revenue.