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| Version 2 | Version 3 |
|---|---|
| Alitalia seeks bankruptcy measure | Alitalia seeks bankruptcy measure |
| (30 minutes later) | |
| Troubled Italian airline Alitalia has applied for bankruptcy protection as it tries to agree a deal to ensure its long-term survival. | Troubled Italian airline Alitalia has applied for bankruptcy protection as it tries to agree a deal to ensure its long-term survival. |
| The carrier has sought court protection from its creditors, effectively declaring itself insolvent. | The carrier has sought court protection from its creditors, effectively declaring itself insolvent. |
| An administrator will be appointed to handle the process, with flights continuing while the firm plans a radical overhaul of its operations. | An administrator will be appointed to handle the process, with flights continuing while the firm plans a radical overhaul of its operations. |
| Losing 2m euros (£1.6m) a day, Alitalia has survived on a 300m-euro state loan. | Losing 2m euros (£1.6m) a day, Alitalia has survived on a 300m-euro state loan. |
| Plans are being drawn up to split the carrier into two and to sell a stake in a new entity to a foreign airline. | Plans are being drawn up to split the carrier into two and to sell a stake in a new entity to a foreign airline. |
| Split in two | Split in two |
| Guaranteeing the airline's future will depend on securing fresh investment and persuading its unions to accept large job cuts. | Guaranteeing the airline's future will depend on securing fresh investment and persuading its unions to accept large job cuts. |
| Both Air France KLM and Lufthansa have expressed interest in investing in any new entity which emerges from the current business. | Both Air France KLM and Lufthansa have expressed interest in investing in any new entity which emerges from the current business. |
| No one can buy Alitalia in the state it's in... the business is toast Roberto Colaninno | No one can buy Alitalia in the state it's in... the business is toast Roberto Colaninno |
| Earlier on Friday, Corrado Passera, head of the airline's financial advisers Intesa Sanpaolo, confirmed that Alitalia's board was drawing up a request to seek bankruptcy protection. | Earlier on Friday, Corrado Passera, head of the airline's financial advisers Intesa Sanpaolo, confirmed that Alitalia's board was drawing up a request to seek bankruptcy protection. |
| The move will give the firm breathing space to reach agreement on how the business can proceed. | The move will give the firm breathing space to reach agreement on how the business can proceed. |
| The government adopted new measures on Thursday aimed at speeding up bankruptcy proceedings, widely interpreted as a signal that Alitalia was set for such a course of action. | |
| Future plans for the carrier would see it divided in half, with its loss-making operations remaining under bankruptcy protection and potentially being liquidated. | |
| Profitable short-haul routes would be separated into a new business, controlled by a consortium of Italian investors including budget airline Air One which would effectively be merged with Alitalia. | Profitable short-haul routes would be separated into a new business, controlled by a consortium of Italian investors including budget airline Air One which would effectively be merged with Alitalia. |
| Italian media have speculated that the new firm will employ 7,000 fewer staff than Alitalia's current 19,000 strong workforce and operate flights to about 50 fewer destinations. | |
| Italian ownership | Italian ownership |
| Prime Minister Silvio Berlusconi has made Alitalia's continued ownership by Italian interests a precondition of any rescue deal. | Prime Minister Silvio Berlusconi has made Alitalia's continued ownership by Italian interests a precondition of any rescue deal. |
| However, experts have said the airline - of which the government owns 49% - can only survive in the future as part of some European alliance. | However, experts have said the airline - of which the government owns 49% - can only survive in the future as part of some European alliance. |
| Silvio Berlusconi wants to keep the airline in Italian hands | Silvio Berlusconi wants to keep the airline in Italian hands |
| Previous attempts to sell the business to a foreign airline have foundered over union concerns about job losses and unease over the severity of the airline's financial problems. | Previous attempts to sell the business to a foreign airline have foundered over union concerns about job losses and unease over the severity of the airline's financial problems. |
| The airline's perilous position was put into perspective by Roberto Colaninno, appointed to take charge of the new entity that emerges from the restructuring. | The airline's perilous position was put into perspective by Roberto Colaninno, appointed to take charge of the new entity that emerges from the restructuring. |
| "No one can buy Alitalia in the state it's in," he told La Repubblica newspaper. | "No one can buy Alitalia in the state it's in," he told La Repubblica newspaper. |
| "With all respect, I am not Merlin the magician. The business is toast. It doesn't exist any more. There's nothing left." | "With all respect, I am not Merlin the magician. The business is toast. It doesn't exist any more. There's nothing left." |
| Alitalia has been crippled in recent years by strategic indecision, poor industrial relations and soaring fuel costs. | Alitalia has been crippled in recent years by strategic indecision, poor industrial relations and soaring fuel costs. |
| Its shares were suspended earlier this summer while the firm has delayed the release of its 2007 accounts. | Its shares were suspended earlier this summer while the firm has delayed the release of its 2007 accounts. |