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Former Alitalia chiefs handed jail terms

The Local Italy
The Local Italy - [email protected]
Former Alitalia chiefs handed jail terms
Giancarlo Cimoli, who was Alitalia CEO between 2004 and 2007, was given a jail term of eight years and eight months. Photo: Andreas Solaro/AFP

Two former chief executives of Italy’s flagship airline, Alitalia, were sentenced to jail on Monday after being convicted of wrongdoing linked to the carrier’s bankruptcy in 2008.

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Giancarlo Cimoli, who was CEO from 2004 to 2007, received an eight year and eight month sentence for culpable bankruptcy, on top of a €240,000 fine, while Francesco Mengozzi, who led the company between 2001 and 2004, got five years.

Two former financial directors - Gabriele Spazzadeschi and Pierluigi Ceschia - were also handed jail terms by the Rome court of more than six years for their role in the bankruptcy.

Meanwhile, three other former managers - Giancarlo Zeni, Leopoldo Conforti and Gennaro Tocci - were acquitted.

Alitalia struggled to recover from the 2008 bankruptcy despite Air France-KLM buying a 25 percent stake in the carrier a year later.

Abu Dhabi’s Etihad came to the rescue last year, investing €560 million in a multi-level deal comprising a 49 percent equity stake in the airline and a 75 percent stake in its loyalty programme, MilleMiglia.

Etihad’s commitment was the largest part of a broader investment with other stakeholders, which totalled €860 million. The investment is expected to help the airline return to profitability in 2017.

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