The Italian government has approved the injection of another EUR400 million euros (USD402 million) into yet-to-be-privatised ITA Airways (AZ, Rome Fiumicino) as efforts to sell it drag, sources told local and international media. The country’s newly elected right-wing government is reportedly reviewing the process and could reopen the field to possible buyers.
An ITA Airways shareholders’ meeting - that is, the Ministry of Economy and Finance - met in extraordinary session on November 8 and resolved that the increase in capital would arrive by the end of the month, sources told Italy’s ANSA news agency.
The sum is part of EUR1.35 billion (USD1.36 billion) that the European Commission agreed to in public investment for the Alitalia successor, to be disbursed as EUR700 million (USD704 million) in 2021, EUR400 million in 2022, and EUR250 million (USD251 million) in 2023.
During the meeting, the company statute was also changed to revise the number of directors, which will now be between a minimum of three and a maximum of nine. Six directors resigned in late March over the rising number of consultants involved in the sale process. The board had already revoked all of the powers of executive president Alfredo Altavilla and transferred them to CEO Fabio Maria Lazzerini. Altavilla subsequently resigned on Monday this week.
The latest capital injection is regarded as essential to keep ITA flying during the slow process to sell it, now that a period of exclusive talks with an investor group led by private equity fund Certares has expired without a deal.
