Ex-Ferrari Chief to Head Alitalia

Luca di Montezemolo

Luca di Montezemolo, who headed Ferrari SpA for 23 years before resigning last month, has been chosen to chair the company being formed by the merger of Italy's troubled Alitalia airlines and Emirates-based Etihad Airways, according to Il Messaggero.

The Italian newspaper says Alitalia's board chose Montezemolo on Wednesday and will schedule a shareholder vote later this month. The airline has not yet confirmed the appointment, which had been widely rumored.

Etihad agreed earlier this year to buy 49% of struggling Alitalia as part of a €1.8 billion rescue plan. Il Messaggero reports that Eithad CEO James Hogan will become vice chairman of the new carrier.

The EC is expected to decide by Nov. 17 whether to approve the merger.