Alitalia lives to fight another day

In a scene reminiscent of Monty Python and the Holy Grail, it appears Alitalia lives to fight yet another day

(Might not be safe for work – has potty language in the last few seconds… but then it’s Monty Python).

It seems the airline’s management has managed to raise €500millon euro rescue package, split down the following:

• Shareholders will contribute €300million
• The Italian Post office will contribute €75million
• Banks will invest €125 million

Alitalia has had to rush these funds as bankruptcy was drawing near, and its fuel suppliers ENI were on the verge of cutting off the fuel supply.

The Italian government sees Alitalia as a strategic resource – and thus by getting the post office to help save it, it can still have a “flag carrier”.

There is a minor little issue with this: that €75million the post office is contributing could be deemed as State Aid (as the Italian Post office is owned by the Government of Italy).

The European Union in the past has looked very dimly at states bailing out airlines – you only need to look back at the collapse of Malev after the EU ordered the return of state aid from the airline  – which promptly lead to Malev being grounded due to massive debts.

Alitalia has failed to make a profit since 2002, and made a first-half loss of €294million this year.

Alitalia hope is that a knight in shining amour comes to rescue it. That knight could be Air France-KLM Group who own 25% of the airline

However, for such a takeover to take place  it would mean a completely different Alitalia to take shape, whilst Air France-KLM avoiding taking on as possible, with the national airline owned by another country.

One way or another, this is just holding Alitalia together for now. Until the next loss and the next crisis hits…..

Oh well. At least the Knights who say NI are not asking for a shrubbery from Alitalia…