Italy's troubled flag carrier Alitalia on Wednesday said it needed millions more in credit by the end of the year and expected to balance its books in 2015 and return to profit in 2016.
The company, which is quarter-owned by Air France-KLM, said it needed a loan of €55 million from its creditors and to increase its financial resources to €300 million.
Alitalia's strategic plan outlined on Wednesday included an increase in activity outside of the country, following a sharp fall in traffic within recession-stricken Italy.
The Italian government announced plans on Thursday to inject at least three billion euros ($3.2 billion) into Alitalia to help save it from collapse in the face of the coronavirus pandemic.
Economic Development Minister Stefano Patuanelli told the Senate the money was aimed at turning the struggling company into the national airline it had been throughout much of its 74-year history.
“This is not another rescue,” Italian media quoted Patuanelli as saying. “This is the company's relaunch.”
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Prime Minister Giuseppe Conte's government in March announced plans to renationalise Alitalia as part of a broader economic rescue package.
It then earmarked 500 million euros in support for the entire aviation sector.
The company filed for bankruptcy in 2017 and looked doomed in January when it failed to secure rescues from either the Italian state railway or Germany's Lufthansa.
Alitalia's management had asked government administrators in March to allow it furlough 4,000 of its 11,000 employees until more passengers are able, and willing, to fly.
The carrier's main trade union announced an agreement Thursday to suspend about 6,600 employees for seven months.
Patuanelli said government administrators intended to keep Alitalia's current fleet.
“There is no downsizing at the company,” the minister said.
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