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Bloomberg
Italy is set to approve a new 400 million-euro loan for failed airline Alitalia, people familiar with the situation said.
The government will give the green light to the funding at a cabinet meeting, according to the people, who asked not to be identified discussing confidential deliberations.
The new loan throws a lifeline to Alitalia as government continues to seek investors to relaunch the carrier. State rail operator Ferrovie dello Stato Italiane and infrastructure giant Atlantia said last month that it was not possible to come up with a viable investment plan for the airline.
Alitalia has been managed by state-appointed administrators since 2017 and is currently burning through a previous 900 million-euro state loan.
One of the people said the government will start a new sale procedure for the company with a deadline in the first half of next year.
Foreign airlines Deutsche Lufthansa AG and Delta Air Lines Inc. have in the past shown some interest in investing in Alitalia, but plans for possible equity involvement have to date been conditioned on far-reaching, credible cost-cutting commitments.
Alitalia has been managed by state-appointed administrators since 2017 and is currently burning through a previous 900 million-euro state loan.