Comment
0
Tweet
0
Print
RSS Feeds

Italy's postal service helps ailing Alitalia

Thursday - 10/10/2013, 6:20pm  ET

ROME (AP) -- Italy's postal service, Poste Italiane SpA, has stepped in to help the debt-ridden national airline Alitalia.

The government said Thursday that Poste would help recapitalize Alitalia and ensure service amid concerns that the carrier might ground to a halt without new financing. News reports have said it needs a capital increase of 300 million euro ($406 million).

In a statement, the government warned that Alitalia requires a "profound revision" in its industrial plan to guarantee its future.

Terms of the deal weren't disclosed.

Alitalia's 62 years as a state-run company ended in bankruptcy in 2008.

The present Alitalia began flying in 2009 as a new company owned by a group of Italian investors. Currently Air France is the largest shareholder with 25 percent.


Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.