Alitalia Gets Another 300M Euro Bridge Loan From The Italian Government

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Alitalia, the bankrupt Italian airline currently in administration, received another 300 million euro bridge loan from the Italian government in addition to the 600 million already received to see the airline last through the IATA winter schedule.

Alitalia Running Out Of Cash

Ryanair is no longer interested in bidding for the airline citing is own scheduling issues. Lufthansa made some noise this past week saying that it could perhaps do something if it could have a clean start (Lufthansa Italia again?).

Here’s an excerpt from the Local IT (access the piece here):

Struggling Italian carrier Alitalia received a boost on Friday when Rome said it would add €300 million ($355 million) to a bridge loan package and extend its deadline for finding a buyer.

“The deadline for the procedure of ceding assets belonging to Alitalia and other societies of the group … has been extended to April 30, 2018,” the government said in a statement.

Alitalia, struggling to compete with low-cost rivals, went into administration at the start of May after staff rejected job and salary cuts as part of a two-billion-euro rescue plan.

In May, Rome said it would provide a €600 million loan to keep the carrier’s planes in the air for around six months, staving off liquidation of the flagship airline.

Those interested in making binding offers for the whole airline were initially given until October 2nd, then October 16th prior to Friday’s move which Rome put down to market conditions.

Conclusion

The airline should then pay these bridge loans at the end of April (900 million euros). Any guess if that will ever happen? Not sure how the government is even allowed to provide these “loans” (more like subsidy)?

Seems that Alitalia is still burning roughly billion a year. Whoever is willing to buy the airline needs to have very deep pockets.

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