Italy Extends Alitalia Loan To USD$1 Billion
Italy will lend Alitalia another EUR€300 million (USD$355 million) as it continues its search for a buyer for the heavily loss-making airline.
The new loan was approved by the Italian cabinet in an emergency decree on Friday. The decree also extended the term of Alitalia’s existing €600 million loan to September 2018.
Alitalia entered special administration in May as competition from low cost carriers pushed it into losses of over a million euros a day. The Italian government appointed three commissioners to manage the airline and keep it flying while it tries to find a buyer for the flag carrier.
The deadline for offers to acquire the airline was also extended in the emergency decree from Monday to April 30, 2018.
Lufthansa chief executive Carsten Spohr said earlier this week the German airline would be interested in helping Alitalia, but not in its present form.