
Italy is currently the country with the most cases of COVID-19 outside of mainland China. Therefore, Alitalia, the Italian flag carrier, has been even more impacted due to the virus. Therefore, the Italian goverment said on Monday that it will take full control of the airline, and will help them as losses caused by the coronavirus pandemic is combined with the financial difficulties it previously experienced.
The airline has previously stated losses since the early 2000s, as investor airline Etihad Airways decided to invest in the airline. However in 2017, the airline pulled out of Alitalia and decided to no longer provide funds for them. Therefore, the government has been looking for a new buyer, with a deadline of May 31. Now that the virus is adding more losses to the airline, Italy has decided to abandon the original plan and come up with a plan to rescue the airline.
What is their Rescue Plan?
The Italian government has decided to renationalize the flag carrier and provide Alitalia 600 million euros of additional funding. As a result, they are planning on creating a business that will be managing Alitalia. However, the country's aviation industry is quite the challenge. Weeks ago, we saw Air Italy's dreams of taking over Alitalia crushed, when they declared bankruptcy and ceased operations. Alitalia is also at a high risk of falling under as well, and we could no longer see an Italian carrier operating long-haul out of Italy.
Now I want to hear from you. Will we potentially see Alitalia fall under? Can the government go through their plan? Or, will they abort the plan? Let us know in the comments!
PHOTOS: Inside Gulfstream's New G800, the World's Longest-Range Business Jet » Pakistan International Airlines Returns to Manchester after 5-Year Ban » This Delaware Firm is Saving FBOs Millions in Hangar Costs »
Comments (2)
az
Love this article! Well done!
plam737
Thank you so much!
Add Your Comment
SHARE
TAGS
NEWS Aviation Alitalia Coronavirus Airline COVID-19 TheExplorerBlogRECENTLY PUBLISHED
Pakistan International Airlines Returns to Manchester after 5-Year Ban
After a hiatus of more than five years, Pakistan International Airlines (PIA) has resumed flights to the United Kingdom. The newly reinstated nonstop service between Islamabad (ISB) and Manchester (MAN) officially took off on October 25th.
ROUTES
READ MORE »
This Delaware Firm is Saving FBOs Millions in Hangar Costs
When most people picture innovation in the aerospace industry, they envision new airline or aircraft startups that revolutionize the way people travel. But sometimes, the biggest revolutions happen on the ground. One Delaware-based aviation firm is quietly shaping the way airports, FBOs, and MROs move aircraft, and saving them millions of dollars in the process.
STORIES
READ MORE »
Air France Announces Paris-Las Vegas Nonstop Service
Air France is expanding its US operations with a new nonstop service from Paris to Las Vegas, significantly enhancing travel options between these two cities. This strategic move not only benefits travelers but also promises economic growth and cultural exchange, while positioning Air France as a key player in the competitive transatlantic market.
ROUTES
READ MORE »