Can Italy Save Alitalia? Government Still Searching For Viable Financial Solution To Help Struggling Airline

The Italian government is still searching for a financial solution to save struggling airline Alitalia, with Prime Minister Giuseppe Conte saying Tuesday that "We do not have a market solution within reach."

Conte has said that U.S.-based Delta Air Lines and the Italian state railway company Ferrovie dello Stato Italiane are still interested in financing the carrier. Delta has offered the equivalent of $110 million to save the airline, but the Italian government may not think that this is a sufficient amount.

Last week, Rome-based infrastructure company Atlantia pulled out of a consortium that would invest in Alitalia. The Italian government is loaning the airline millions of euros as it searches for private funding.

“The conditions that need to be met in order for Atlantia to be able to take part in a consortium, set up to put together a binding offer for Alitalia, do not as yet exist,” Atlantia said in statement.

Alitalia announced in April 2017 that the company is undergoing a bankruptcy process. Although the Italian government formally approved the company's request to file for bankruptcy a month later, it decided against nationalizing the airline.

Budget airlines Easyjet and Ryanair have also previously been interested in buying the airline, but have decided against purchasing the carrier.

Alitalia was founded in March 1999 and is Italy's largest airline company.