Italy approves bridge loan to keep Alitalia operating until November
The Italian council of ministers has approved a E600m (US$655m) emergency bridge loan for Alitalia, which should secure operations until November. Prime minister Paolo Gentiloni said this intervention will also protect certain services that are fundamental to the country. Alitalia announced it would enter extraordinary administration May 2 after Alitalia labour unions derailed the carrier’s turnaround plan by rejecting a labour agreement. That deal called for around 980 redundancies from the company’s 12,500 workforce and an 8% pay cut. The Italian govt agreed with the EU to grant the loan in order to avoid state aid, which requires EC approval. Gentiloni said he is against “re-nationalising [Alitalia],” reaffirming that “we don’t want to put the company’s burden on the Italian taxpayers.” <br/>
https://portal.staralliance.com/cms/news/hot-topics/2017-05-05/sky/italy-approves-bridge-loan-to-keep-alitalia-operating-until-november
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Italy approves bridge loan to keep Alitalia operating until November
The Italian council of ministers has approved a E600m (US$655m) emergency bridge loan for Alitalia, which should secure operations until November. Prime minister Paolo Gentiloni said this intervention will also protect certain services that are fundamental to the country. Alitalia announced it would enter extraordinary administration May 2 after Alitalia labour unions derailed the carrier’s turnaround plan by rejecting a labour agreement. That deal called for around 980 redundancies from the company’s 12,500 workforce and an 8% pay cut. The Italian govt agreed with the EU to grant the loan in order to avoid state aid, which requires EC approval. Gentiloni said he is against “re-nationalising [Alitalia],” reaffirming that “we don’t want to put the company’s burden on the Italian taxpayers.” <br/>
