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Italy's Conte calls on Delta to commit more to Alitalia

Sat, 21st Sep 2019 15:15

MILAN, Sept 21 (Reuters) - Delta Air Lines shouldconsider increasing its planned investment in the rescue ofAlitalia, Italian Prime Minister Giuseppe Conte said on Saturdayas talks over the relaunch of the Italian flagship carrier dragon.

The U.S. airline is part of a group of investors led byItalian railway group Ferrovie dello Stato behind a possiblerescue of the loss-making airline.

The potential investors, which also include infrastructuregroup Atlantia and Italy's treasury, plan to create anew company that will take the control of the struggling carrierand inject around 1 billion euros ($1.1 billion).

Delta has so far pledged to take a stake of 10%, withFerrovie and Atlantia poised to become key investors.

Speaking at an event in Rome, Conte called on Delta to playa bigger role in the project.

"A 10% stake seems to me a bit low to have a strong businessinvolvement," Conte said.

The group of potential rescuers has been given more time tosubmit a rescue plan amid claims by some sources that there is alack of agreement on key aspects of the project.

A management reshuffle at Atlantia, following theresignation of long-serving Chief Executive GiovanniCastellucci, could also impact the rescue talks.

Atlantia, which is expected to take around 30% in the newairline, is struggling to deal with the fallout of the collapselast year of a road bridge in Genoa operated by its motorwayunit.

Since the disaster in which 43 people died, the groupcontrolled by the Benetton family has been under fire fromruling coalition party 5-Star Movement, which has called forAtlantia's lucrative motorway concession to be scrapped.

Analysts, however, said the group's involvement in theAlitalia rescue could soften the government stance on theconcession.

Conte said the government considers the rescue of Alitaliaand the motorway concession "as two completely differentissues". He declined to say whether the resignation ofCastellucci could pave the way for a more constructive dialoguebetween Atlantia and the government.

($1 = 0.9077 euros)(Reporting by Francesca Landini; Editor Mike Harrison)

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