Italy appoints new administrator overseeing Alitalia
Italy's Ministry of Economic Development on Friday appointed attorney Giuseppe Leogrande as the temporary administrator overseeing troubled airline Alitalia as it seeks to reorganize and find a buyer, Trend reports citing Xinhua.
The appointment of Leogrande was a necessary step for the government to unlock a government loan of 400 million euros (442 million U.S. dollars) aimed at keeping the Italian flagship carrier afloat as it looks for a buyer.
According to local media reports, Stefano Patuanelli, Italy's Minister of Economic Development, asked three current Alitalia administrators to step down so that Leogrande could step in as a single administrator with added power.
Leogrande's challenge will be to restructure the company to make it a more attractive takeover target. It will not be easy. Italian media has reported the company is losing money at a rate of more than 700,000 euros (775,000 U.S. dollars) per day.
Once the new cash infusion from the government is complete, it will mean Alitalia will have gone through three major government bailouts in the last 11 years, according to media reports.