Thursday, 26 March 2020

Italian government plans to take over Alitalia

Report by : Gan Yung Chyan
                 / KUCINTA SETIA


According to Reuters, union sources revealed that the Italian government plans to take over the loss-making Alitalia in about a month and set up a new airline with a much smaller fleet.

Sources said the Italian Ministry of Industry has informed the union that the new Alitalia will have 25-30 aircraft, about a quarter of the size of the fleet it operated before the outbreak of the new crown.

A source said: "The government says that 25-30 aircraft were only the size of the beginning, but we are concerned that the fleet will not expand after the state of emergency."

The Italian government did not elaborate on its plans for Alitalia's workforce, which currently has more than 11,000 employees.

The unions say they have asked the government to elaborate on Alitalia's business plan and said the government should "protect employment."

Affected by the COVID-19 pandemic, Alitalia currently operates 100 flights a day, a quarter of its normal level.

Last week, the Italian government approved a decree allowing it to place Alitalia again under state control. 

The Italian government has allocated 500 million euros ($ 537 million) to bail out the Italian aviation industry but sources say most of the funds will be allocated to Alitalia, which is running out of funds.

Since May 2017, Alitalia has been operated by the government-designated bankruptcy administrator and has been looking for new investors.

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