Italy's government on Thursday extended the deadline for the sale of struggling flagship carrier Alitalia to the end of October, Industry minister Carlo Calenda said.

The airline, in which Etihad Airways owns a 49 per cent stake, entered insolvency proceedings in May 2017 and the Italian government has since been seeking an investor.

But the sale process was delayed as a result of uncertainty around national elections held in March, which ended in a hung parliament.

The cabinet on Thursday also postponed the deadline for the repayment of a bridge loan granted to the carrier to December15.

The conclusion of the sales process and the repayment of the credit line were initially expected by April 30.

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