The Italian government has signed paperwork for creating a new aviation company, for restructuring the much-troubled Alitalia.
This move comes as part of wider €3 billion recapitalization of the company following the Covid-19 pandemic.
“The re-founding represents the first step towards creating a high-quality transport company that is competitive on the international market,” said the Italian finance ministry in a statement.
This was the “cornerstone for the revitalisation of Italian air traffic,” the statement added.
Italian flag-carrier Alitalia last witnessed a profit in 2002, and has been under state-controlled administration since early 2017.
Key managers for the new airline were also named earlier, including President Francesco Caio.
They would draft a new industrial plan within 30 days which needs to be approved by the European Commission. Italian minister of transport, Paola De Micheli said, “The new national airline is born today in clear discontinuity with the past and which will have to play a leading role on the international market. This is a large industrial operation at the service of the country in support of the competitiveness of our companies and for the re-launch of Italian tourism.”
The new airline hasn’t been named yet, but reports have suggested ‘ITAliana’ as one of the viable options.
De Micheli said that the industrial plan would have a five-year outlook avoiding any substantial downsizing, with no job cuts.
The new airline is expected to have a fleet of more than 100 aircraft.
The Italian government has said that Alitalia may be privatized again in the future, after its expected recovery under public ownership.
