A new, state-owned Alitalia could replace the old carrier in April once it has secured the approval of both the Italian parliament and the European Commission, the manager chosen to head the revamped airline said on Wednesday.
After 11 years of turbulent private management and three failed restructuring attempts, the coronavirus crisis scuppered government’s plans to sell the ailing carrier.
Earlier this year, Rome decided to set aside 3 billion euros ($3.62 billion) and create a new company that would buy the good assets of the old carrier and launch a new strategy with the state’s support.
To receive fresh public money, after the old carrier burnt around 8 billion euros in taxpayers’ funds in the last four years, the revamped carrier needs to show it would be profitable and that the new resources will not be used only to allow a zombie company to survive.
“The 3 billion euros (earmarked by the government) is an ambitious endowment … we will use it gradually, we will keep part of the money for when there is an opportunity in the market,” CEO designate Fabio Lazzerini told members of a parliamentary committee.
The new CEO, who served as managing director at Emirates in Italy before moving to Alitalia in 2017, said he and Chairman Francesco Caio were putting the finishing touches on a new business plan to be presented to the parliament and the EU.
“The new airline will focus on premium clients, will not be a low-cost carrier,” he said.
He added negotiations were underway with two airline alliances to clinch a commercial partnership that would cover Europe, North America and, possibly, other far away markets, including China.
A first meeting with the EU Commission to present the new business plan was set for next week, he said.
The old Alitalia is part of the SkyTeam alliance, which includes Air France-KLM and Delta Air Lines.
($1 = 0.8288 euros)
Main Photo: (FILE) A file photograph showing an Alitalia airplane lands at the ‘Leonardo da Vinci’ International Airport in Fiumicino, Rome, Italy. EPA/ALESSANDRO DI MEO
