Alitalia is officially nationalized through the establishment of a newco controlled by the Treasury. They conclude in this way, on the sly compared to the general chaos related to the coronavirus pandemic, the decades-long vicissitudes of the former national airline, in which only once – in 2002 – under the guidance of the then CEO Francesco Mengozzi, did it manage to close the balance sheet with a profit.
THE TEXT OF THE DECREE
The decisive step comes precisely with the Cura Italia decree, which, among the various measures aimed at countering the crisis triggered by the virus, in the third paragraph of article 79 provides the following:
"In consideration of the situation determined on Alitalia's activities (...) by the COVID-19 epidemic, the establishment of a new company wholly controlled by the Ministry of Economy and Finance or controlled by a company with predominantly public, even indirect, participation is authorized ”.
The following paragraph specifies that the extraordinary commissioner "is authorized to carry out all necessary acts" for the sale of Alitalia. The Ministry of the Economy, on the other hand, "is authorized to participate in the share capital or to strengthen the capital endowment of the new company, even in several phases and also for subsequent capital or capital endowment increases, also through companies with predominantly public participation, even indirect ”.
AIR MARKET IN CRISIS
The government's decision on Alitalia comes at a crucial time for the entire airline market. Due to the travel restrictions imposed by the coronavirus pandemic - which resulted in the closure of borders by various European states, as well as Donald Trump's decision to stop flights between the US and the EU - the Center for Aviation (Capa) believes that by the end of May, scores of airlines will already be bankrupt.
THE GOVERNMENT DEFENDS NATIONALIZATION
"The national carrier is strategic for the destiny of our country and we need our national airline," said the Minister of Infrastructure and Transport, Paola De Micheli.
Laura Castelli, deputy minister for the economy, recalls instead that, when the Coronavirus emergency arrived, Alitalia was "in the midst of an operation waiting to close. Getting the national airline back on its feet is in the national interest, it falls within the theme of national assets to be protected".
However, what neither De Micheli nor Castelli say is the nationalization of Alitalia will not be a free meal for Italians but a drain on taxpayers without any real hope of recovery for the company which, even if it manages to occupy all the of its aircraft, would not break even due to the high costs it is burdened with and the obsolescence of its reference markets, in which long-haul is marginal
THE JUDGMENT OF BRUSSELS IS MISSING
However, the judgment of the European Commission is pending on the operation, which will have to establish whether the creation of the newco by the Treasury can constitute state aid prohibited by Community legislation. Brussels, commented a Commission spokesman, "is ready to work with Italy, as well as with all other Member States, to discuss the possibilities of supporting air transport, including Alitalia and other companies, while respecting European rules".
