Alitalia: Italy’s bankrupt national airline is being put up for sale

On Tuesday, Alitalia started bankruptcy proceedings for the second time in a decade.

Alitalia will be put up for sale in two weeks having earlier this week fallen into administration. In a radio interview cited by the Financial Times, Carlo Calenda, the country’s economic development minister, said that the priority is for the whole company to get bought.“Within 15 days the commissioners will be open to expressions of interest,” he said.

On Tuesday, Alitalia started bankruptcy proceedings for the second time in a decade after employees rejected job cuts and concessions linked to a €2bn ($2.2bn) recapitalisation plan. Shareholders voted unanimously to file for special administration. According to the Financial Times, the government of Prime Minister Paolo Gentiloni has extended a bridge loan of €600m (£508m) to keep Alitalia afloat for the next six months, but hasruled out nationalisation. This loan should give the commissioners appointed by the government time to come up with a strategy that will ensure the airline’s fleet is not grounded.

Speaking to the broadcaster, Mr Calenda said the €600m loan would be the “maximum” of state aid on offer. Speaking about possible buyers, Mr Calenda said “any idea is welcome”.He stressed, however, that “Alitalia needs an alliance with a big European group”.

Alitalia, whose major shareholders are Abu-Dhabi based Etihad Airways and Italian banks, has about 12,500 employees. It has been struggling ever since a previous bankruptcy in 2008. Additional reporting by wires.

Original story first appeared on independent.co.uk