Italy's new right-wing government has shown it is prepared to put sound finances ahead of national pride by revamping plans to sell a stake in the successor of the country's repeatedly bailed-out flagship airline to Germany's Lufthansa. ITA Airways took to the air in 2021 and has had to struggle with the legacy of its loss-making predecessor Alitalia, that sucked in an estimated E10b of state funds in its last 14 years of life. Looking to forge ahead with a sale, the government passed a decree to sell an initial minority stake in ITA with the aim of speeding up the full divestment, a cabinet statement said. Lufthansa declined to comment on Rome's decision to offer an initial minority stake. ITA's CE Fabio Lazzerini confirmed that talks were ongoing with Lufthansa. Newly installed PM Giorgia Meloni has pledged to protect the national interest in strategic sectors, aiming to regain control of Telecom Italia's landline grid and preparing a trusteeship for a refinery in Sicily owned by Russia's Lukoil. Some of Italy's politicians consider ITA as the heir to cultural icon Alitalia, which they want to preserve. Industry Minister Adolfo Urso, a senior figure in Meloni's Brothers of Italy party, called the old Alitalia "the first showcase" of the country in the world. But economic reality has hit hard and, after years of failed bailout strategies, Meloni has little choice but to press ahead with sale plans.<br/>
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Garuda Indonesia has achieved a milestone on its road to recovery, with the receipt of Rp7.5t ($478m) in funds from Jakarta. The carrier, which has undergone a massive restructuring exercise, will use the funds to help restore its fleet, buy spare parts, conduct maintenance, and for operations, it says. The payment, made under the auspices of the government’s State Capital Investment (PMN) programme, was contingent on the carrier meeting specific criteria outlined in its restructuring plan. “We are optimistic that this PMN realization will strengthen Garuda’s steps in accelerating the continuous restructuring process expected to be completed by the end of this year,” says CE Irfan Setiaputra. “Surely, it is also an important phase for Garuda’s efforts to raise the national momentum to optimize the aviation industry sector in 2023.” He adds that government support is key for the airline’s recovery, and that Garuda is integral to the Indonesian economy. In addition, the PMN payment will help the carrier meet obligations to creditors undertaken via the PKPU (Debt Payment Obligations Postponement) process. Garuda’s complicated restructuring addresses a number of parties. Lessors and creditors with a certain level of exposure receive bonds, while some creditors also will receive equity. The package also includes generous loan extensions related to borrowings from Indonesian state-owned enterprises and banks.<br/>