The President of Alitalia Airlines stated today that the airline, without immediate financial aid from the Italian Government, has "less than one month" left. You can read the full story in Corriere della Sera and La Repubblica.

Bad news! But thanks for posting it.

Air Canada also faces bankruptcy, although it's still not sure what is going to happen.

What happens to people with tickets on bankrupt airlines?

This would be a bitter blow for Italy. I'd bet they eventually get some government help.

Are the unions willing to take salary cuts? I hope management is willing to chip in as well.

"Are the unions willing to take salary cuts?" Ha!

Any answers on what DOES happen to people with tickets on bankrupt airlines? (Note the panic in my voice....)

When we had tix and an airline went bankrupt VISA reimbursed us. If you didnt pay by credit card then you join the hundreds of other people the business owes money to and wait your turn. When Canada 3000 went banrkupt many people lost their moeny.

Hope this helps!

Jbee - A slightly different situation, but I was holding a ticket for travel on Swissair during the few days when they were not flying at all a couple of years ago. Swiss was completly shut down, unavailable to assist in any way, and no other airlines would honor the tix.

I ended up paying for another ticket (on Delta), and putting the Swissair ticket into dispute with my cc company. Since I had paid for services I did not receive, I had not problems from them. Just mailed them the actual ticket with a short letter explaining why it couldn't be used.

Alitalia is trying to snuggle up to the Air France/KLM projected merger although it's hard to see how they will be attractive if broke.

From what I have been reading in the online Toronto papers, Air Canada is far from dead. They DO have a problem though, which is the current management, which will probably be a casualty of the next refinancing offer. [The one that just failed seemed to be a sweetheart deal for management.]

Thanks for the quick reply. It does help, especially since I paid with a CC. Here's a further question - I booked tickets through Orbitz and my tickets state the carrier is Alitalia, operated by Delta. So who's flying the plane?

jbee - Delta is flying the plane, and you'll be checking in at the Delta counters.

I think sfowler is correct about the Alitalia situation. They are trying to get a rescue package from the Italian government, so that they can make themselves attractive to the new holding company of AF/KLM to buy them out.

Whew! So, as long as Delta doesn't go broke, I'm okay. Sorry to be in such a me, me, me attitude - it's my 1st Italian trip and I'd be devastated to be grounded 5 months in advance!

Thanks to all for your reassurances.

jbee - Wait a second. Actually, while I think the Alitalia executive is mainly bluffing, if they actually get liquidated, DL may not honor your reservation. AZ buys the seats from DL, and resells them under their own flight number, so DL has no obligation to bring you to Italy if Alitalia no longer exists. They may do that as a goodwill gesture to you, but they may not.

Where was this story reported? Can you please post a link to your source? Alitalia has strikes already planned into May : http://www.seekitaly.com/news/from_roma.html#strikes

On the inital post in this thread, it states: "[Y]ou can read the full story in Corriere della Sera and La Repubblica."

These are in Italian.
www.corriere.it
www.repubblica.it

Eek! Guess I'll get a hold of Orbitz to get their "official" stance, just in case. I won't panic yet, but I'll be operating in pre-panic until they decide they're not bluffing. Thanks again!

I am very worried also with this news. We have FF tickets for May booked through Delta but flying on Alitalia. Any suggestions?

You can read about this (in English) on :

www.airwise.com

KatGio,

Since your ticket was <b>bought</b> by Delta, you should be ok. If Alialia disappears in the next few days/weeks your ticket is still valid with Delta. Delta does not have to pay for it till you actually fly with Alitalia. Will you get the flight you want? Probably not and maybe all you will get is your miles back, but you will not loose anything as long as you don't have any pre-paid hotel/attractions.

That said, I have a hard time believing that Alitalia will go totally bankrupt. Each European nation still likes to have the so-called national carrier. Italian government will step in and keep the airline going, at least in the near future.

Maybe this worry is for naught. The president of Alitalia denies making these remarks:

http://news.airwise.com/stories/2004/04/1081191638.html

As posted by AAFlyer on the Airlines board, perhaps Delta is going bankrupt:

http://www.usatoday.com/travel/fligh.../sky.htm#delta