The Italian government will take full control of Alitalia in June, Industry Minister Stefano Patuanelli said, adding that otherwise the airline would have collapsed due to the coronavirus crisis.

Alitalia has been governed by a state-appointed leadership since May 2017, and the difficulties caused by the pandemic have only added to the company’s serious financial problems, which failed the earlier plan to sell the private investor operator.

The former state-owned airline was founded shortly after World War II, but has long struggled to achieve profitability. This last move will put an end to 11 years of difficult private management, which included three failed attempts at restructuring.

Last week, the International Air Transport Association (IATA) said the loss of airlines around the world would reach 314 billion USD this year, a 55% drop in passenger revenue compared to last year.

Stefano Patuanelli said that Alitalia’s revenue had fallen by 87.5% since the beginning of this year.

In a statement to the parliamentary committee on transport, the minister said that in early June the government would set up a new company that would acquire 100% of the carrier.

“The new Alitalia will launch with a fleet of more than 90 aircraft, up from the current 113 aircraft”, said Stefano Patuanelli, denying rumors that a total of 30 aircraft could be removed. “Thanks to the state intervention, Alitalia will be able to compete successfully when the sector recovers”, added the minister.

Stefano Patuanelli said he would discuss with the Economy and Transport Ministers a possible new international alliance for the airline after the deal with American Delta Air Lines expired on May 24.