"Cursed" Italian airline on brink of collapse
"Cursed" Italian airline on brink of collapse
Italian airline Alitalia is on the brink of collapse after Air France-KLM pulled out of a takeover deal for its troubled rival.
Jean-Cyril Spinetta, head of Air France-KLM, withdrew from the proposed deal saying that Alitalia's nine unions had made negotiation impossible.
The Italian government has now stepped in to ensure that the airline continues operating for the time being.
It has provided the firm with a 300 million euro (£236 million) loan to alleviate its money problems.
However, with the Daily Telegraph reporting that Alitalia is losing £800,000 a day, the outlook seems bleak for the carrier.
Maurizio Prato, who stepped down from his position as chairman of the airline after the failed negotiations, was quoted by unions as saying: "This company is cursed, only an exorcist can save it."
According to the Daily Telegraph, two other airlines - Italian domestic carrier Air One and Russian company Aeroflot - could yet launch a bid to save Alitalia, but it is not certain if either will be able to raise the funds required to do a deal rapidly enough.
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4 April 2008
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