Tags: Italy | Alitalia | postal | rescue

Alitalia Board Set to Vote on Rescue Plan

Friday, 11 Oct 2013 06:30 AM

The Alitalia board is to vote Friday on a new rescue plan to inject 500 million euros ($678 million) into Italy's struggling flagship airline.

Under the rescue package, the Italian Postal Service and the state each would inject 75 million euros, giving the government a 15 percent share in the airline, which was privatized in 2008. The plan also includes 150 million euros from current shareholders and 200 million euros in bank loans.

The government on Thursday welcomed the Postal Service's decision to become an Alitalia shareholder, citing synergies with the postal service's Mistral Air, a unit that operates cargo and passenger services.

Analysts say the move would better position Alitalia to negotiate a deeper alliance with Air France-KLM, which withdrew a takeover offer in 2008 under political pressure.

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