Alitalia rescued after financing deal agreed

Alitalia jet The Italian postal service has contributed to Alitalia's rescue

Related Stories

Alitalia has avoided bankruptcy after the airline's shareholders agreed to raise fresh funds.

The board of Alitalia agreed to a 500m euros (£425m; $678m) rescue package.

Shareholders will contribute 300m euros, including 75m euros from the Italian postal service, and the rest will be financed by banks.

Alitalia was facing bankruptcy and its main fuel supplier had threatened to cut off supplies on Saturday if the airline failed to secure new financing.

Alitalia has rarely made a profit in its 67-year history, and in the first half of this year it lost 294m euros.

The government says there will be an overhaul of the business.

Air France KLM remains the airline's biggest shareholder with a 25% stake.

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

Business Live

  1.  
    06:23: Market update Radio 5 live

    Virginie Maisonneuve of asset manager Pimco is talking on Wake Up to Money about the markets. They were mainly up yesterday. Minority parties taking power in Europe has "not been taken seriously" by the market she says.

     
  2.  
    06:07: Greek election fallout Radio 5 live

    More from Yannis Zabetakis, a lecturer at the university of Athens, is on Wake Up to Money. Youth unemployment at 50% is another dangerous signal for the country, he says. He also denies Greece is a special case. While there's growth in Britain under austerity, the wealth gap is widening and there are more people in poverty, he says.

     
  3.  
    06:02: Greek election fallout Radio 5 live
    A supporter of Alexis Tsipras, leader of Syriza left-wing party, holds the Greek and French flag

    Yannis Zabetakis, a lecturer at the university of Athens, is on 5 live talking about the debt burden on Greece. More than a million unemployed means paying off the debt is very difficult, he says. Employment prospects for his students are very poor and he recommends setting up an export company or going abroad. Salaries are going down and tax up, he adds.

     
  4.  
    06:01: Matthew West Business Reporter

    Morning folks. Get in touch at bizlivepage@bbc.co.uk ot tweet us at @bbcbusiness.

     
  5.  
    06:00: Howard Mustoe Business reporter

    Good morning. At 09:30 we expect the first estimate for fourth quarter gross domestic product for the UK. There'll also be company results from 07:00. Stay with us.

     

Features

  • Devi AsmadiredjaHermit queen

    The woman who left Germany for a gorge on the Chechen border


  • Fishermen on lake in MalawiAfter the flood

    Water everywhere in Malawi and not a drop to drink


  • Part of a Thomas Greve picture of the liberation of BuchenwaldBearing witness

    How a young survivor's drawings helped bring the Holocaust to life


  • Architect's drawing of the Great Mosque of AlgiersSky scraper

    Why Algeria is building the world's tallest minaret


From BBC Capital

Programmes

  • Robbie RogersHARDtalk Watch

    Gay footballer Robbie Rogers on locker room homophobia and the ‘pack mentality’ in soccer

Copyright © 2015 BBC. The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.