Alitalia old chief makes way for new
Alitalia’s board replaced its chairman, who had resigned a day earlier. Maurizio Prato, a former senior executive at state-controlled aerospace and defence company Finmeccanica, replaces Berardino Libonati
By Agencies |
ROME: Alitalia’s board on Wednesday replaced its chairman, who had resigned a day earlier, but it postponed to August 30 the approval of a new, long-awaited business plan for the troubled airline. Maurizio Prato, a former senior executive at state-controlled aerospace and defence company Finmeccanica, replaces Berardino Libonati, who stepped down after less than six months at the head of the company.
Alitalia shares fell more than 4% Wednesday following Mr Libonati’s resignation, which followed the Italian government’s failed attempt to auction its stake in the loss-making flagship carrier.
Alitalia has been without a chief executive since Mr Libonati took over in February from chairman and CEO Giancarlo Cimoli. Mr Libonati, a former telecom executive, had accepted the post of chairman in view of the possible sale of the airline, but after the collapse of the seven-month auction process he felt that “managerial abilities and a knowledge of the sector” were now needed for the job, Alitalia said in a statement late Tuesday.
Mr Prato’s appointment had been expected. The economics ministry, Alitalia’s main shareholder, said on Tuesday that it would back him as the new chairman and that it hoped Mr Prato would quickly find a buyer for the company. Alitalia said it has delayed approval of the business plan, which was originally meant to be passed by the board on Wednesday, to give Mr Prato time to look at the carrier’s strategic options. The board had already postponed the decision in a meeting last month.
The Italian government is seeking a private investor to buy at least a 39.9% stake in Alitalia, but is prepared to sell its entire 49.9% stake. Shares in Alitalia were down 4.05% at euro.8515 ($1.17) on Wednesday on the Milan stock exchange as Alitalia’s board met.
The government was forced to call off the auction on July 18 after all bidders progressively dropped out, with many citing restrictive conditions and shifting guidelines. The bidders included Air One, Italy’s second-most travelled carrier, Texas Pacific Group, the private equity house, and Russia’s OAO Aeroflot Russian Airlines.
Hurt by frequent strikes and competition from low-cost carriers, Alitalia loses between euro1 million and euro2 million ($1.4 million and $2.8 million) a day.
The government has been looking at options and has ruled out liquidating the company. On Sunday, economics minister Tommaso Padoa-Schioppa ruled out direct negotiations with private buyers, saying the courts would not allow it.
Alitalia shares fell more than 4% Wednesday following Mr Libonati’s resignation, which followed the Italian government’s failed attempt to auction its stake in the loss-making flagship carrier.
Alitalia has been without a chief executive since Mr Libonati took over in February from chairman and CEO Giancarlo Cimoli. Mr Libonati, a former telecom executive, had accepted the post of chairman in view of the possible sale of the airline, but after the collapse of the seven-month auction process he felt that “managerial abilities and a knowledge of the sector” were now needed for the job, Alitalia said in a statement late Tuesday.
Mr Prato’s appointment had been expected. The economics ministry, Alitalia’s main shareholder, said on Tuesday that it would back him as the new chairman and that it hoped Mr Prato would quickly find a buyer for the company. Alitalia said it has delayed approval of the business plan, which was originally meant to be passed by the board on Wednesday, to give Mr Prato time to look at the carrier’s strategic options. The board had already postponed the decision in a meeting last month.
The Italian government is seeking a private investor to buy at least a 39.9% stake in Alitalia, but is prepared to sell its entire 49.9% stake. Shares in Alitalia were down 4.05% at euro.8515 ($1.17) on Wednesday on the Milan stock exchange as Alitalia’s board met.
The government was forced to call off the auction on July 18 after all bidders progressively dropped out, with many citing restrictive conditions and shifting guidelines. The bidders included Air One, Italy’s second-most travelled carrier, Texas Pacific Group, the private equity house, and Russia’s OAO Aeroflot Russian Airlines.
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Hurt by frequent strikes and competition from low-cost carriers, Alitalia loses between euro1 million and euro2 million ($1.4 million and $2.8 million) a day.
The government has been looking at options and has ruled out liquidating the company. On Sunday, economics minister Tommaso Padoa-Schioppa ruled out direct negotiations with private buyers, saying the courts would not allow it.
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