Air Transport World

Alitalia bridge loan approved.(Brief Article)

Alitalia's restructuring took another step forward last month with the provision of a 400 million [euro] ($495 million) government-backed loan intended to keep the airline aloft until early next year, when it hopes to achieve a 1 [euro]-2 billion [euro] recapitalization under which it will be split into AZ Fly--the air transport activities--and AZ Service, covering support and maintenance operations.

The plan envisions that the government will retain at least 30% of AZ Fly and that AZ Fly initially will keep 100% of AZ Service. At a later date, this stake will fall to 51% while a publicly owned company--most probably state holding company Fintecna--takes the other 49%. This shareholder setup would last until at least 2008, Alitalia said in a statement. …

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