Alitalia may be in line for a public intervention

Is there good news in sight for the future of Alitalia? Yes, by way of the idea of a public intervention that returns in vogue.

In fact, shortly, there should be a meeting at the headquarters of the Ministry of Infrastructure between the extraordinary commissioners Luigi Gubitosi, Enrico Paleari, and Stefano Laghi, along with representatives of the government in view of a decision that brings a share of the capital of the former flag carrier to public hand.

To organize the meeting, it would be the Undersecretary for Infrastructures and Transport, Armando Siri, who also called the Under-Secretary to Mise, Michele Geraci, and the head of the cabinet, Vito Cozzoli, to the same table.

At the summit, according to Il Messaggero, (Roman daily), Luigi Gubitosi and the other commissioners should present a dossier prepared by Rothschild illustrating the last accounts of Alitalia.

Among the solutions on the horizon to give a future to the former national carrier, there is the possibility of intervention in the share ownership of Ferrovie Dello Stato, (the Italian State railway system) with one of the companies belonging to Cassa Depositi e Prestiti, (CDP), (an Italian investment bank).

Among these, the focus would be on Quattro, an SGR (asset management company) that manages a fund of € 711 million, where CDP is acting as an underwriter together with subjects such as Inail, (the National Insurance Company for Workers) Inarcassa, and Cassa Forense.

The purpose of the SGR is to “promote and carry out restructuring, support, balance, and consolidation of the financial and capital structure of companies or groups of companies based in Italy which, despite temporary capital or financial imbalances, are characterized by adequate prospects industrial and market, but need to redefine the financial structure or adequate capitalization or in any case restructuring.”

The deadline of October 31, 2018 – the date set for the sale of the carrier – is approaching, and as reiterated by Gubitosi a few days ago, “It is desirable to respect the timing to complete the revival.”

In June, according to the Commissioner, revenues from passenger traffic increased by 10.6%, while in the second quarter the Ebitda (earnings before interest, taxes, and amortization), which was negative by about 100 million last year, will be close to balanced.