AirOne proposes Alitalia merger

AirOne reportedly approached the Italian Government with a proposal to merge with Alitalia, Italys financially troubled flag carrier. Under the proposal, AirOne would sell options on at least 60 A320s to Alitalia, for a capital gain of approximately EUR300 million, which would then be paid in newly issued Alitalia shares back to the LCC. Such an issue would make AirOne Alitalia’s largest shareholder. Several senior Government ministers are reportedly in favour of the plan.