On October 10, Italy’s government released a communique that air company Alitalia requiring the huge funds of €500 million could be bailed out by the state-owned postal service Poste Italiane.
The postal company is ready to acquire a share in the air company’s capital. On October 10, The Wall Street Journal reported with the reference to an anonymous source that money inflows into Alitalia could be equal to €100 billion. Apart from the investments, Alitalia might forge a partnership with air freight carrier Mistral Air which is also owned by the postal company. However, the Wall Street Journal noted that Poste Italiane’s participation among Alitalia’s shareholders might not be approved by the EC authorities who always speak out against a government intervention into an economy.
Next week, the air company’s shareholders are to approve employing the funds at €155 million which will be allocated for enhancing the capital. A part of the funds is supposed to be used for purchasing debt securities that might be converted into the company’s shares later on. Besides, Alitalia is considering the possibility of raising €300 million from its investors. However, KLM-Air France being the major owner of the air company’s shares is not going to take part in Alitalia’s bailout.
In the first half 2013, Alitalia’s overall indebtedness reached €946 million. The company gave an account of a net loss at €294 million for the period January – June 2013.
Alitalia has been unprofitable since 2000. In 2008, ex-Prime minister Silvio Berlusconi prohibited KLM-Air France to acquire in full ailing Alitalia. Instead of this, Alitalia’s shares were sold to 21 shareholders who were represented by large companies including Intesa Sanpaolo bank.
