Thursday October 12, 2006

'Out of control' Alitalia heading to bankruptcy

channelnewsasia.com :

Alitalia will go bankrupt unless a rescue plan is put in place within three months, Prime Minister Romano Prodi said, describing the finances of Italy's flag-carrier airline as "completely out of control." Unable to stanch its losses - 167 million euros in 2005 - Alitalia did not even try to balance its books this year, with red ink expected to approach 300 million euros, according to an internal document quoted by the press.

Alitalia, which is 49% controlled by the Italian government, has failed to turn itself around barely more than a year after raising one billion euros, covered by a group of banks and the state, to launch an ambitious restructuring plan. What is more, relations with the unions began to nosedive with the plan, which called for 3,700 job cuts from the company's 20,000-strong workforce.

See also :

1. Airlines worldwide set to lose $3 billion this year
2. Northwest Airlines suggests dumpster diving for axed workers

(2006-10-12 12:36:45 SGT) [Biz] Permalink

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