Italy reportedly may have to launch a tender at market prices for the sale of assets belonging to nationalized airline Alitalia, in order to get European approval for a relaunch plan for the carrier.
The European Commission (EC) has reportedly told the Italian government that it cannot simply transfer Alitalia’s assets into the country’s new national carrier Italia Trasporte Aereo (ITA).
Alitalia has operated its first flights to São Paulo after a suspension of more than nine months, with services to Buenos Aires in Argentina set to resume imminently.
One of the world’s best-known airline names seems destined for the history books following the announcement that Italian flag-carrier Alitalia will be replaced by Italia Trasporti Aereo (ITA).
The European Commission has approved a €199 million ($236 million) grant from the Italian government to Alitalia, aimed at offsetting losses caused by the COVID-19 outbreak, although two earlier state-aid investigations are continuing.
Alitalia said it would increase international flights as it looks to increase traffic following the COVID-19 shutdown, with its medium- and long-haul capacity set to grow by 7% in September and 29% in October compared to August levels.
Italy’s flag-carrier Alitalia plans to resume a further two-dozen routes in August, including reinstating flights from Rome to Tokyo and from Milan to New York.
Italy may have to review the plan to nationalize and relaunch Alitalia if the proposal does not obtain European Commission (EC) approval, Italian media reported.
Alitalia has said that from June 2 nonstop Rome-New York service will be resumed alongside direct flights to Barcelona and Madrid as it plans to operate 36% more flights in June than in May.
Italy plans to invest at least €3 billion ($3.2 billion) in relaunching newly renationalized Alitalia and is eyeing the long-haul market, according to economic development minister Stefano Patuanelli.
More European airlines have outlined how they intend to rebuild their networks over the coming weeks after the mass fleet groundings in response to the COVID-19 pandemic.
Alitalia will relaunch in June with a reduced fleet of around 90 aircraft, Italy’s economic development minister Stefano Patuanelli told a parliamentary hearing April 23.
Alitalia’s MRO division says it will focus on heavy maintenance work for its in-house fleet of aircraft in the absence of third-party repair work while the COVID-19 coronavirus pandemic plays out.