nochblad

This was tagged in air travel so it probably has little visibility

http://www.fodors.com/community/air-...s-from-now.cfm

sparkchaser

I think it got the attention it deserved.

This would be a relevant thread to monitor: http://www.flyertalk.com/forum/alita...bankrupcy.html

GAC

Air France is positioning itself to take over selected Alitalia routes once the Italian carrier's debts are "purged" in bankruptcy. Alitalia has many unprofitable routes, but also many very profitable ones. The problem is that Alitalia is no longer viable as a standalone carrier: it must necessarily be absorbed into a larger entity such as Air France, to benefit from economies of scale and centralized operations. The "hangeup" has to do with the number of personnel cuts and who runs the show. The French are keen to take over (minus all the debt, and as long as they run the show), and the latest moves may well represent the "death blow" to Alitalia's independence. The French takeover would "save" Alitalia as a viable "division" of the Greater Air France Group. Otherwise, the umbilical cord of continue state financing will eventually be severed. Ideally, Alitalia should file BK this winter, so that it can be "rescued" in time for the busy summer season next year, when most of the profitable routes are operated in the long-distance markets.

neckervd

Alitalia is a loss making airline since years. It has been saved by the government (against all EUR rules) so many times that nobody in Italy takes this new alert serious.

BTW: the next national Alitalia strike will take place Nov 22nd, followed by a regional strike in Apulia on Nov 29th

Meridiana, another bakrupcy candidate will strike on Nov 11th.

GAC

This article (in Italian) explains that the real "hangup" for Air France is the cancellation of Alitalia's debt:

http://economia.panorama.it/aziende/...-france-debito

"Crunch time" will arrive (once again) when Alitalia runs out of cash (which is likely to occur during the winter months). ENI will refuse to supply aviation fuel, and that will shut down Alitalia.

The Italian government cannot continue in perpetuity to dole out money (in the guise of an "investment" from the Italian Post Office, which is nothing more than a laundered form of government assistance), which buys time for Alitalia to continue paying its bills while is waits for a takeover by another carrier such as Air France.

So, I really don't see this as "more of the same". The bubble must break at some point, and the winter months would seem to be the most dangerous for such an event.

Even the Italian Government recognizes that the recent "recapitalization" of Alitalia is merely a "bridge" to a permanent solution requiring a merger with a stronger and bigger partner.

Alitalia needs a "pre-packaged bankruptcy" which will restore service very quickly after the debt is purged in bankruptcy.