Alitalia is on the verge of rescue, as the state-controlled airline is being courted by an Italian investment consortium. However, the investors are threatening to pull their bid and funding guarantees unless Alitalia can guarantee union approval of the plan.
For days, the parties have been negotiating between airline employees, the head of CAI (the investment group involved in the bailout), and the airline itself. The head of CAI has informed the airline that, unless they can arrange for union approval of their plans, the investment group will pull their buyout offer. The Italian [...]

Some people believe that passengers don’t have to cry over some of the weaker airlines in Europe being put out of business because of the high price of fuel. Many of the airlines that are under a threat offer poor services, are surviving because their operations are conducted in a protected market, and fly very old aircrafts. Alitalia, for example, is only still running due to the government injecting millions into the company in order to keep it operating. Twenty years ago, the carrier was the behind of jokes, but not very much has gotten better since [...]

Italy is closer to resolving the situation of keeping Alitalia from filing bankruptcy, says Claudio Scojola, the Industry Minister, and they are not ruling out probability of putting the airline under extraordinary administration, which is where the government appoints a special administrator to run a company in trouble so that it does not have to declare bankruptcy. Scajola thinks that finding a solution is very close, which will allow the company to relaunch with capital from Italy, and he added that this would prove to be useful and significant as a whole for Italy. When Scajola was asked [...]

On last Friday, Aristide Police, Alitalia’s chairman, casually remarked that the plan for the future of Alitalia is not constructed around the airline claiming bankruptcy or on the placement of debts separated into another entity. On the contrary, in a move planned to help the troubled carrier, Intesa Sanpaolo has been exploring a new strategy to rescue the airline, which eventually failed at finding a buyer when the company was up for sale a year and a half ago by the government. According to the newspapers, Intesa Sanpaolo’s plan may prompt a change in one of Italy’s bankruptcy laws or [...]

An appeal that Alitalia made in a continuing inquiry about the state’s aid was rejected by the European Court of Justice. In its stuggles, Alitalia challenged the European Commission’s conditions on a state aiding a company for restructure. The latest ruling of the court doesn’t apply any new requirements to Alitalia and the European Commission is considering the case to be settled. The large debts and cost of fuel have made the future of Alitalia unstable. There was a statement that was released on Wednesday that stated that the Court of First Instance has dismissed the action by Alitalia and [...]