Italy's Gov't Sets September 15 as New Deadline for Alitalia Offer
Rome (dpa) - Italy's state railway operator Ferrovie dello Stato (FS) has been given until September 15 to make a formal offer for Alitalia airline, an Italian government source said Wednesday.
The source, an official at the Economic Development Ministry, added that FS should at the same time also present an updated business plan.
The date marks yet another deadline in drawn-out rescue efforts for the loss-making airline, which has been under state-controlled bankruptcy administration since 2017.
FS is leading a consortium due to take over Alitalia, including the Italian Economy Ministry, US airline Delta and Atlantia, an airports and motorways group controlled by the Benetton family.
It is still unclear how much money the new investors will offer, but FS and the economy ministry are expected to acquire a controlling stake in the airline.
This would partly renationalize Alitalia, leaving Delta and Atlantia as minority shareholders.
Infrastructure Minister Danilo Toninelli told parliament on Wednesday that Delta's investment would not go beyond 100 million euros (112 million dollars), roughly equal to 10-per-cent stake.
Widespread scepticism remains about the Alitalia's prospects: it has not turned a profit since 2002, has lost market share, and is propped up by state loans totalling 900 million euros.
The money is supposed to be paid back with interest but this may never happen due to continuing government efforts to support the company.
However, the European Commission may object to this. The EU executive, which regulates antitrust matters in the bloc, has an ongoing state aid investigation into the affair.
———
©2019 Deutsche Presse-Agentur GmbH (Hamburg, Germany)
Visit Deutsche Presse-Agentur GmbH (Hamburg, Germany) at www.dpa.de/English.82.0.html
Distributed by Tribune Content Agency, LLC.

