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Background to State air for airports and airlines:
The near-bankrupt Italian airline Alitalia is to receive an emergency capital injection from Italy’s state-owned post office. Italy’s government did not say how much Poste Italiane SpA, the Italian postal service, would be investing – but it might be up to €100 million. The Italian government hope the link between Poste Italiane and Alitalia would lead to a synergy of logistics, in passengers and cargo. Italy’s civil aviation authority had warned just hours earlier that the airline risked being grounded if new financing was not found urgently. Alitalia needs some €455 million to stay afloat. The Italian government justified what amounted to state intervention saying Alitalia was considered a national asset. It filed for bankruptcy in August, as high staff costs, industrial relations issues and surging oil prices further dented its finances. It is being suggested that Alitalia might be able to merge with Air France-KLM to help get it out of its financial problems. Alitalia went bankrupt in 2008, and was re-launched in 2009.
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The near-bankrupt Italian airline Alitalia is to receive an emergency capital injection from Italy’s state-owned post office.
Italy’s government did not say how much Poste SpA, the Italian postal service, would be investing.
The airline has said it needs to raise 455m euros (£385.2m) to stay afloat.
Alitalia filed for bankruptcy in August, as high staff costs, industrial relations issues and surging oil prices further dented its finances.
On Thursday the office of the Italian Prime Minister Enrico Letta said: “The government values Alitalia as a strategic asset for the country”.
Analysts estimate that Poste may inject up to 100m euros into the airline.
Many have suggested that a merger with Air France-KLM is the most likely solution to Alitalia’s woes.
However, the French group, which owns 25% of the airline, has not yet said if it is considering that option.
Alitalia went bankrupt in 2008, and was re-launched in 2009.
http://www.bbc.co.uk/news/business-24486214
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By Giulia Segreti and Guy Dinmore in Rome (Financial Times)
10.10.2013
Full story at
http://www.ft.com/cms/s/0/f04fd64a-31c9-11e3-817c-00144feab7de.html#axzz2hbPrPPF2
………….. Formerly state-owned Alitalia was taken out of bankruptcy in 2009 by Italian investors and Air France-KLM. It has since racked up debts of about €1bn and was losing an average of €1.6m a day in the first half of this year.
Full story on the Financial Times at
http://www.ft.com/cms/s/0/f04fd64a-31c9-11e3-817c-00144feab7de.html#axzz2hbPrPPF2
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15.10.2013 (FT)
Full FT article at http://www.ft.com/cms/s/0/bbb37398-356f-11e3-b539-00144feab7de.html#axzz2hbPrPPF2
Alitalia shareholders have agreed a rescue package backed by Italy’s coalition government that includes a €300m capital increase, partly underwritten by the state-owned postal services operator and two major banks.
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IAG, parent of British Airways, said: “We have always been opposed to state aid . . . We would urge and expect the European Commission to take interim measures to suspend this manifestly illegal aid.”
Alitalia declined to comment. But Brussels is now expected to examine Alitalia’s proposed capital increase involving Poste Italiane to assess whether it complies with European Union rules restricting state support to companies.
Italy has yet to approach the commission, even informally, to discuss the Alitalia situation, but Brussels wants Italy to apply for permission for the capital increase before it happens.
Brussels said: “We expect Italian authorities to notify the envisaged measure to the European Commission. Only after receiving the notification will we be able to assess its compatibility with EU state aid rules.”
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.Full FT article (££) at
http://www.ft.com/cms/s/0/bbb37398-356f-11e3-b539-00144feab7de.html#axzz2hbPrPPF2
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