400 million euros
Another financial injection for ITA Airways
The Italian state has given its approval to another injection of public funds of 400 million euros into ITA Airways, which was created from Alitaly. The president of ITA Airways resigned on Monday.
Another financial injection from Rome for Alitalia’s successor ITA Airways. CEO Fabio Lazzerini (right) and recently resigned president Alfredo Altavilla during a presentation in Rome. (Recorded on October 15, 2021)
According to Tuesday’s decision, which was made at an extraordinary general meeting of advisers of the Ministry of Economy, the funds should reach the ITA coffers by the end of the month. The Ministry is a 100% shareholder of the airline.
The EU has given the go-ahead for ITA to launch in September 2021, approving €1.35bn in state funding – on the condition that the airline eventually gets back on its feet.
ITA Airways President Alfredo Altavilla, who has been stripped of his operating powers twice by the state, resigned on Monday night amid talks to sell the state-owned airline. Altavilla was accused of thwarting the sale of ITA Airways to the US investment fund Certares, which works with Air France-KLM and Delta Air Lines.
The former European head of Fiat has never made a secret of his preference for a rival bid from Lufthansa and Italian-Swiss shipping company MSC.
After an initial €700m government injection in 2021, ITA Airways was due to receive another €400m tranche in 2022, approved on Tuesday, and another in 2023.
Over the years, the Italian state has spent more than 13 billion euros trying in vain to get the previous company, Alitalia, back on track.