Alitalia successor ITA to launch in late 2021

The discussions between ITA and the European Union on replacing state-owned Alitalia have “ended positively”, and the new carrier will be fully operational starting 15 October 2021, Italy’s Ministry of Economy and Finance has stated.

The long-awaited deal with the European Commission followed months of debate over what ITA could expect to inherit from Alitalia and how clean the break should be between old and new company, so that the successor is not liable for returning billions of euros the flag carrier has racked up in state aid.

“The new company will be fully operational starting 15 October, the date on which the first flights are scheduled to take off,” the ministry said.

The talks “made it possible to reach a constructive and balanced solution that guarantees the discontinuity necessary for compliance with European legislation. The positive outcome and allows procedures to begin relating to the capital increase of ITA and creates the conditions for the signing of a Memorandum of Understanding for the transfer of certain activities from Alitalia to ITA,” it continued.

“The foundations are being laid for a new national carrier for solid, sustainable, and independent air transport, capable of operating in a sign of discontinuity and with solid prospects for growth and development.”

Under the deal, ITA will seek to raise initial capital of EUR700 million euros (US$826 million) to buy assets direct from Alitalia and commence operations. It will bid in a public tender for the Alitalia brand, which has been one of Brussels’ requirements for the deal. The newco has said that the brand remains “an essential element” of its business plan.