The Government of Italy creates a public airline ITA following the closure of private company Alitalia
- The private airline, which has received public aid of over EUR 1.3 billion, has been declared bankrupt. A national company will take its place from 15 October. 7,000 workers can be affected by plant closure.
The Italian Government has ordered the closure of the airline Alitalia and the establishment of a public airline, ITA (Italia Transporto Aereo) instead. Despite the fact that the private company has received subsidies and public aid, it has suffered significant economic losses and has been in the administration since 2017. Since then, lengthy negotiations have taken place between the European Government Commission to nationalise the company.
The talks ended on 5 July and on 18 August the new airline ITA received the Air Operator Certificate and the Air Transport Operation License. The first flights will start on 15 October, coinciding with the day when Alitalia closes its doors to the airport.
However, that closure is not going to be easy. The 10,000 employees of the private company have requested their transfer to the new company, although the ITT has indicated that it will only benefit some 3,000 workers for the first phase. In addition, the Rajoy Government has decided to cut the wages to which they remain.
The workers who want to keep the job have called for a strike on 24 September in the Basque Country. Italy's Minister for Economic Development, Giancarlo Giorgetti, explained that they will do "everything possible" to prevent damage, but that the situation is "very complex". Secretary General of the Italian Transport Workers' Federation, Fabrizio Cuscito, has asked the Public Administration to open a "government debate": “We’ll ask for answers, we’ll be at [negotiating] tables.”
Public investment
The nationalised airline will receive aid of EUR 1.5 billion from the government and will not inherit the debts that Alitalia has accumulated over the years. Many of them have been acquired from the public fund by the company in bankruptcy: The Italian state has granted it EUR 1.3 billion and 300 million of Brussels aid has been channelled over the last year to deal with the pandemic.
The ITT will start working with the same means as Alitalia, but it intends to expand its business. At the moment, 52 aircraft of the company will be used (expected to reach 22 by the end of 2022, compared to 105 of 2025) and 45 destinations will be offered (foreseen 74 in 2025).
Customer Repair in Italy
As from 15 October, however, everything will be ready for operation. They have already started to sell airline tickets, but even though Alitalia replaces the company, they will not take care of the travel that this airline sold earlier. In total, there are about 250,000 clients affected by the virus.
Passengers who have booked a flight with Alitalia after 15 October may, until 14 October, request the exchange of tickets or the return of money. They can take the flight to a day before that date at no extra cost, keeping the same destination. If you choose another destination, the price may vary: if the flight is more expensive, you will have to pay more; if it is cheaper, the difference will not return.
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