Understanding Government Intervention on Flag Carriers: The Case of Alitalia and TAP Air Portugal
Understanding Government Intervention on Flag Carriers: The Case of Alitalia and TAP Air Portugal
INTRODUCTION
In March 2020, the Italian government proposed a series of provisions in support of families, workers, and companies who were harshly hit by the Covid-19 pandemic and the related containment measures. Among other interventions within the government decree, commonly referred to as ‘Cura-Italia’ (lit. heal-Italy), up to €500 million were allocated to the re- nationalisation of the country’s flag carrier, Alitalia (Il Sole 24 ORE, 2020b). While the whole sector of air transport risked going up due to the travel restrictions imposed to reduce the spreading of the coronavirus, the decision to bring Alitalia fully under control of the Ministry of Economy and Finances reignited a long-lived debate, given the poor performance of the airline in recent decades.
AUTHORS:
Capra Alessandro
Vignato Barbara