Italy to loan Alitalia $650 million as it seeks a new buyer
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Struggling Italian air carrier Alitalia entered its second period of bankruptcy protection in a decade on Tuesday with the government approving a 600 million-euro ($650 million) bridge loan to keep the airline operating as it seeks a new buyer.
The move came after the Alitalia board acknowledged the failure of a government-brokered relaunch plan, which workers overwhelmingly rejected despite softened job and salary cuts, out of concern it lacked a realistic strategy to revive revenue.
The plan's failure blocked a planned 2 billion-euro ($2.2 billion) investment from both managing shareholder Etihad Airways, with a 49-percent share, and a consortium of Italian investors that controls a 51-percent stake.
