ROME (Pakistan Point News / Sputnik - 16th July, 2021) Italy has struck a deal with the European Commission on the creation of a new airline to succeed its loss-making flag carrier Alitalia, the economy and finance ministry announced on Thursday.
"We have successfully completed the discussion with the European Commission on creating Italia Trasporti Aereo (ITA). The new company will commence its work by October 15, when the first flights are scheduled," the statement said.
The ministry expects the European Commission to approve a 3 billion euro ($3.6 billion) bailout of Alitalia. The deal is said to create conditions, under which the ITA will replace Alitalia, with its capital increased.
Alitalia, created in 1946, has been on the verge of bankruptcy for more than a decade. The European Union and Italy have been in lengthy talks over Alitalia and its successor ITA. The European regulators required that ITA be formally separated from its predecessor company. With this agreed, the key hurdle to the negotiations was cleared early in July.
