Alitalia Faces Bankruptcy
Italian airliner Alitalia faces bankruptcy, it was reported Sunday, because it may not be able to secure fuel from suppliers. These suppliers fear Alitalia may not be able to pay for the fuel.
“Up to tomorrow [Sunday] we have guaranteed flights, but not on Monday because no-one will supply us with kerosene,” Augusto Fantozzi, the company’s special administrator, was quoted as saying on Saturday. 
12 flights could very well be grounded Monday, he reportedly said. The anonymous sources added that Fantozzi had warned that dismissal procedures had to start immediately, due to Alitalia’s unions’ refusal to agree with the company on how to cut spending. This would, it was said, be necessary to safe the company from bankruptcy.
In a public statement later yesterday, Fantozzi denied he had been so alarmist. He did admit that “there are risks of supply difficulties which could threaten certain flights.”
He added that ‘the crews of 34 aircraft, which were currently not being used by the company could be laid off from Monday, but added that he would only sack the entire workforce “when there is nothing else left to do”.’
Al Jazeera quoted expert Howard Wheeldon as saying: “the coffin is lying there for Alitalia.”
“It’s been kept alive artificially, but there are limits. Even though trade union talks are going on, I think this airline will go under.”
The Italian government owns 49.9 per cent of Alitalia, which has been surviving on a state loan of $425m made at the end of April.
