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Air Travel

Alitalia to be renationalised under coronavirus strain

By Molly Dyson / 17 March 2020 / Contact Reporter
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The global coronavirus outbreak has reportedly stalled plans to sell Alitalia, with the Italian government now considering renationalising the troubled airline.

Alitalia has faced a rocky journey over the past few years and filed for bankruptcy in 2017. It has been kept in operation through a number of government rescue loans, with multiple take-over bids failing in the years since.

The Italian government had been seeking interested bids with a 31 May deadline for a sale, but local news outlet Il Messaggero said the country-wide lockdown as a result of the coronavirus had forced it to abandon those plans.

According to other reports, the government is prepared to take control of Alitalia’s aviation and land operations in a move that could cost taxpayers up to €600 million.

Fellow Italian carrier Air Italy ceased operations last month and went into administration after failing to get stakeholder support for a rescue.

The deal is thought to be part of a wider €25 billion package agreed by prime minister Giuseppe Conte to help families and businesses affected by the coronavirus, which has killed more than 2,100 people in Italy.

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