Alitalia went through its last financial restructuring back in 2014 when Etihad came in and invested half a billion to the loss making airline making it the largest shareholder at 49% stake.
The airline is still losing half a million a day and Italian banks have given short term credit facility giving Alitalia 60 days to come up with a (yet another) restructuring plan.
Here’s an excerpt from Reuters:
Italy’s Alitalia has approved a short-term financing deal and a new industrial plan that will include job cuts, it said on Thursday, as the loss-making flagship carrier steps up efforts to sustain its business.
In a statement on Thursday, Alitalia said short-term funding had been agreed to allow its management team to begin negotiations in the next 60 days with key stakeholders.
“The next two months will be crucial for Alitalia,” Chief Executive Cramer Ball said, adding without “a subsequent and significant financing package from shareholders Alitalia will have no future”.
And from the Telegraph:
The troubled airline, which reported a net loss of €199m (£169m) last year, has denied reports that it will slash 2,000 jobs as part of its new industrial plan, but admitted it would reduce the workforce to “the right size, right shape” for the business.
The latest round of crunch talks comes two years after Etihad, which holds a 49pc stake in the carrier, pledged to return Alitalia to profit by 2017 after investing €560m as part of a wider €1.76bn lifeline.
Not sure how many financial restructurings and last ditch efforts to keep the airline flying there have been throughout the years. Seems like Alitalia is going from one financial distress to another.
Let’s hope that they can finally come up with long terms solution to make the airline profitable again. The past few years airlines have had great time profit wise while the price of the collapsed. Alitalia, however, was unable to reach profitability even during this time frame.