ITA Airways, the successor to Alitalia, is in talks with several banks for a €300 million ($321 million) loan to finance its fleet expansion, Messaggero reported on Saturday.
The airline has started talks with UniCredit SpA, Banca Monte dei Paschi di Siena SpA, BPER, Santander and Credit Agricole Italia for a six-year loan, the Italian newspaper reported without saying how got the information. The loan would be guaranteed for 80% of the amount by the state-controlled Italian trade-credit insurer Sace SpA, Messaggero said.
ITA Airways needs financing to execute a plan to expand its fleet to 95 aircraft by the end of 2024 from the current 82 units, the newspaper said.
Germany’s Lufthansa AG earlier this year agreed to buy a minority stake in state-controlled ITA to expand its reach in Europe. Once the deal is complete it may end a decades-long saga for the loss-making Italian flagship carrier.
Read more: Italy Sees Closing of ITA Stake Sale to Lufthansa by End of 2024
The deal is currently under review by the European Commission. Notification to the merger department of EU Commission was expected in November, but could be pushed into 2024, Sole 24 Ore reported this month.
