Alitalia could be relaunched within a month

Troubled airline Alitalia could be relaunched within a month thanks to a government rescue package, according to reports.

The airline, which is the national carrier of Italy, looked as if it could be headed for oblivion before an agreement was reached on a deal that will see it receive some €2 billion (£1.56 billion) in government funding.

There are likely to be a number of changes to Alitalia's operations, however, with its network substantially reduced and one in three jobs likely to be cut, Travel Weekly reports.

After merging with domestic carrier Air One, Alitalia is expected to drop many of its long-haul routes and focus on domestic and medium-haul services.

The Italian government has reportedly been seeking an outside buyer to help Alitalia recover from its financial problems for over two years.

Air France and Lufthansa are both in the frame to buy a stake of up to 25 per cent in the airline and use Rome, Milan or possibly both as hub airports.

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