The Italian Government has invested another $400m in cash into ITA Airways as it weighs the sale of the airline in the coming months, Bloomberg reported.
With this capital injection, the government aims to keep the company afloat amid a sale process that is said to be slower than expected.
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Alitalia, the predecessor to ITA Airways, stopped operations last year in October, accumulating more than $11bn in debt, according to Simpleflying.
After ceasing operations, the European Union approved up to $1.35bn funding in the state carrier.
The latest infusion takes the total investment in the airline to date to $1.1bn, including an initial injection of $700m.
Since January, talks have been underway to sell the airline.
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By GlobalDataIn January 2022, Lufthansa reportedly planned to buy a 40% stake in ITA Airways.
In September, the Italian Government decided to start talks with a consortium led by US private equity fund Certares for the sale.
Also comprising Air France-KLM and Delta Air Lines, the consortium reportedly outbid MSC and Lufthansa with its offer.
According to a Reuters report, Certares is said to have placed a €600m bid for a stake of nearly 60% in the carrier.
However, a period of exclusivity with the consortium ended without a deal, and the process to offload the carrier has been re-initiated.
The government is now looking to contact Lufthansa and MSC again for the sale.
