Italy sets up new company to relaunch Alitalia: report

0 Comments | AFP, August, 2008

MILAN (AFP) — A new company has been formed which will oversee the relaunch of Italy's near-bankrupt flag carrier Alitalia, the Radiocor news agency reported Tuesday, citing financial sources.

The new company will be called the Italian Air Company, Radiocor said, and will be headed by Roberto Colaninno, the boss of iconic scooter maker Piaggio.

Sixteen investors have pledged to support the company, including some of the top names in Italian industry and finance, their total commitment likely to be worth around one billion euros (1.47 billion dollars).

According to Italian press reports, the new company, part of a rescue plan for Alitalia organised by top bank Intesa Sanpaola, will take on the airline's still profitable operations while another will take over...