The Italian Government has confirmed that there will be no more state aid when the current finance package expires in May, and that without a buyer the airline will shut down permanently.
Entering bankruptcy in May 2017, a number of investor plans ranging from Delta to Lufthansa, Ryan Air and easyJet, Italian Railways and a construction company have been entertained.
Not one of them is prepared to offer what the government wants in terms of money, though that’s actually a secondary consideration as they’d take anything reasonable. The main problem is that Italian unions just won’t accept what’s on offer.
The unions have placed themselves in a situation where they reject any take over offer, but face closure because of it and everyone loosing their jobs.
The Italian Government has arranged loans of $900m so far, and none of it is ever likely to be paid back unless a buyer is found.
Three years is the limit on EU bailouts of struggling companies and the Government can’t afford further loans and legally has run out of time.
Despite the improvement in Alitalia’s revenues it’s still loosing around $2.2 million per day.