Airline Pilot Forums

Airline Pilot Forums was designed to be a community where working airline pilots can share ideas and information about the aviation field. In the forum you will find information about major and regional airline carriers, career training, interview and job seeker help, finance, and living the airline pilot lifestyle.

View Full Version : Alitalia Edges Towards Bankruptcy

04-03-2008, 08:47 AM
This seems to be happening on both sides of the pond. So sad. I wake up to NPR every morning and it was full of negative airline news today - Alitalia, ATA, SWA.

From Associated Press:

ROME - Trading in shares of Alitalia was suspended Thursday and the company board called an emergency meeting as the troubled Italian air carrier edged toward bankruptcy.

After repeated failures to lure a buyer, the last, Air France-KLM, walked away from the deal Wednesday, options for Alitalia are running out.

The airline’s chairman, Maurizio Prato, quit Wednesday when talks between Air France-KLM and Alitalia’s unions fell apart.

Both sides appeared to leave the door open for renewed negotiations, however.

Air France-KLM’s Chairman Jean-Cyril Spinetta faulted the unions for the breakdown, but said the proposed buyout, “was a plan in which I deeply believed and in.”

Air France-KLM said late Wednesday that union proposals would not allow it to quickly return Alitalia to profitability. Air France-KLM’s offer values the airline at 139 million euros ($216 million) and is conditional on union approval.

The collapse of the talks marked a setback to the Italian government’s effort to sell its 49.9 percent stake in Alitalia before the company runs out of cash.

Unions plan to hold a news conference later Thursday.

The takeover plan includes about 2,100 layoffs from the 11,000-strong work force.

UIL, a transport workers union representing some Alitalia workers, has said any agreement is meaningless until a new government is in place.

Parliamentary elections are less than two weeks away, and conservative candidate Silvio Berlusconi, the front-runner in opinion polls, has strongly criticized the Air France-KLM bid.

Alitalia is losing more than 1 million euros (nearly $1.6 million) a day, and the airline said in February that its cash reserves had dropped to 180 million euros, down nearly 40 percent from a month earlier.