According to Italian Industry Minister, the Italian government has announced it will add six months to efforts to revive Alitalia, but will liquidate the company if the intervention fails, the government said.
Alitalia has not turned a profit since 2002 and required multiple state bailouts over the years. The airline has been under government administration since May 2017 amid unsuccessful efforts to find private buyers.
Alitalia was recently given a six-month government loan of EUR 400 million (USD 440 million), following EUR 900m in aid granted in 2017.
The June 2020 deadline coincides with the end of the mandate of Alitalia special administrator Giuseppe Leogrande, who was tasked with further restructuring Alitalia to make it more attractive to investors.
The minister said the Alitalia group would not be sold off in separate sales of its commercial flights, maintenance and ground handling divisions.