Italy to sell a stake in loss making Alitalia SpA

Italy to sell a stake in loss making Alitalia SpA

The Italian government has said that they are planning to sell off a stake in the unprofitable national airline Alitalia SpA.

The aim is to keep the airline company afloat and this might give a chance to Air France-KLM Group to take over the operations of the Alitalia.

The office of Prime Minister Romano Prodi spoke on this decision: “The strategic recovery of Alitalia cannot be done without the entry in the company’s capital of new industrial and financial partners.”

Italy has a 49.9% stake in the company, which is said to be worth around 655 million Euros.

This decision to sell off a stake in the company is also expected to bring a change in the management of the company.