Fresh Losses at Alitalia

Published: 14/11/06

Struggling Italian carrier Alitalia saw losses increase to more than GBP44 million in the 3rd quarter of 2006, as fears grow for the survival of one of Europes oldest airlines. A spokesman for the airline also warned that losses for the full year were likely to exceed the figures of 221 million Euros that it posted last year.

In a classic case of things going from bad to worse, Alitalia, which is racing against time to put together a rescue plan before the government pulls the plug in January has faced striking staff and ever higher fuel prices over the past twelve months, as well as terrible management decisions.

Hopes were high that Air France KLM would take a stake in the carrier, but the Italian Government said that the joint group would have to contribute to the recovery, while the interest that Air France showed was more towards asset stripping Alitalia once the Italian government had bailed it out.

The airline has now turned to the Far East in its search for wealthy backers, but it is possible that it is now in its death throes, and will soon cease to offer cheap flights to Italy or anywhere else.

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