Alitalia shares opened lower on August 1 after the surprise resignation of Chairman Berardino Libonati, after only seven months in the job.

The Italian Treasury, which holds 49.9% of the national carrier, has proposed that Libonati be replaced by Maurizio Prato, the current Fintecna chairman and CEO, and his appointment will become official when the Alitalia board meets on August 1.

Libonati resigned after the failure last month of the auction he organised to sell a controlling stake in the troubled airline.

The government has now decided to sell the carrier directly and the Alitalia board is expected to give the airline's new management a mandate to "quickly" find a buyer.

A statement from the economy ministry said that potential buyers "must make a commitment to restructure and relaunch Alitalia keeping in mind elements of general interest deemed essential by part of the government in a perspective of continuity and adequacy of the air transport in Italy".

August 1's board meeting is also expected to approve the guidelines for a new business plan for the transition period leading to Alitalia's sale which should include an increase in the company's capital, a rethinking of its network strategy and downsizing the role of Milan's Malpensa airport.