Alitalia Sets Out €500m Budget Lifeline

Italian carrier Alitalia hopes its ongoing financial challenges can be put behind it after approving a €500 million ($677 million) budget package.

The airline is set to receive €300 million from shareholders and €200 million from new bank credits.

Intesa Sanpaolo S.p.A. and UniCredit S.p.A. will guarantee a subscription of a maximum of €100 million and the Italian post service Poste Italiane S.p.A. will contribute €75 million.

A board of directors and shareholders meeting will be held tomorrow. Air France-KLM remains the airline’s biggest shareholder with a 25 per cent stake.

Alitalia will start direct Rome-Abu Dhabi flights on A330 aircraft from December 1, codesharing with Etihad.

As well as providing its passengers with direct access to Rome, Etihad will codeshare on Alitalia operated flights beyond Rome to Venice and Zurich.