After months of failed negotiations, the Italian government has signed a decree to establish a successor to the country’s embattled national carrier
The Italian government has approved the creation of a new company to succeed troubled Italian flag carrier Alitalia, as the administration continues with its plan to nationalise the failed firm.
Referring to the new airline initially as Newco, Paola De Micheli, the country’s transport minister confirmed the company’s formal name is set to be ITA, which stands for Italia Trasporti Aereo SpA.
The new firm’s formation comes after more than a decade of difficult private management which has included three failed restructuring attempts. In April this year, the Italian government announced it would take over Alitalia and that the fleet would be reduced from 110 down to around 100.
In a statement, De Micheli said the new airline “will have to play a leading role in the European and international market” and that it will “bring Italy into the world.”
Fabio Lazzerini, Alitalia’s current chief business officer is believed to be in line for the chief executive role at the new company, while Francesco Caio, the current chairman of the board of directors of Saipem – an Italian multinational oilfield services company – is thought to be in line for the same role and ITA.
Tipped the begin operations next year, ITA’s formation marks a step in the right direction for the restructuring of the troubled carrier, which last turned a profit in 2002.