The Italian government has extended a further EUR300 million (USD354.64 million) in funding to bankrupt Alitalia and its Alitalia CityLiner unit.
An official gazette issued on Friday, October 13, said the funding would add to a EUR600 million euro (USD655 million) bridging loan extended to the carrier in May this year. The due date on the initial loan has also been extended from November 2017 to September 2018 to allow the airline time to complete the sale of its assets to prospective buyers.
“The deadline for the procedure of ceding assets belonging to Alitalia and other companies within the group (…) has been extended to April 30, 2018,” the gazette said. “The state loan (…) is to ensure the continuity of air transport services until the transfer of all business units has been effected.”
Earlier this month, Alitalia applied to the Italian government for a six-month extension to the payment of unemployment benefits to its workforce. An airline statement issued on Friday, October 6, said the renewed period would run from November 1, 2017, through to April 30, 2018.
Alitalia and CityLiner are currently in administration pending the completion of the sale of their constituent assets. The deadline for the submission of binding offers for Alitalia and/or its operational and groundhandling units remains unchanged at Monday, October 16.