The Italian government has issued an emergency decree, stating it will step in to assist its aviation sector owing to the likely damage arising from the outbreak.
It has authorised the reconstitution of the carrier as a new company under the auspices of the country’s economic and finance ministry.
Reuters reports the Italian government has set aside €600 million to prop the carrier up, citing a draft of the decree.
Several efforts to firm up Alitalia’s finances have been proposed over the past year, but none have come to fruition.
Last July, Italian highways firm and airport holding company Atlantia was chosen as the fourth and final partner in a consortium pulled together by the country’s state rail firm Ferrovie dello Stato, which has been tasked with bailing out Alitalia.
However, Atlantia pulled out in November.
