Page last updated at 09:10 GMT, Wednesday, 28 May 2008 10:10 UK

Alitalia calls for urgent support

Alitalia plane
Alitalia is struggling to cope with large debts.

Debt-laden Italian airline Alitalia has warned it needs an urgent injection of capital on top of a recent government loan in order to survive.

It was recently saved from collapse by a 300m-euro ($473m; 238.8m) government loan, which is under scrutiny to see if it breaches European state aid rules.

The collapse of a proposed takeover by Air France-KLM had left it in an "uncertain" situation, the firm said.

The carrier also unveiled a net loss of 495m euros for 2007.

This was less than the 626m-euro loss it made in 2006.

The airline, which is struggling with 1.35bn euros of net debt, said the losses were due to the rising cost of fuel, passengers being put off by industrial disputes and competition from low-cost rivals.

Italian newspaper reports suggested the Intesa Sanpaolo bank could be involved in a new bid for Alitalia.

The head of Air One, Carlo Toto, who made an earlier offer for Alitalia, could finance a new offer, along with the chief executive of scooter-maker Piaggio, Roberto Colaninno, media reports said.

Alitalia failed to complete a deal with its preferred bidder Air France-KLM after the Franco-Dutch carrier could not agree terms with Alitalia unions over plans to reduce costs and cut jobs.




SEE ALSO
Alitalia stalls annual accounts
26 May 08 |  Business
EU presses Italy on Alitalia loan
24 Apr 08 |  Business
Alitalia loan stirs rescue hopes
23 Apr 08 |  Business
Air France scraps Alitalia bid
21 Apr 08 |  Business
'Short term' survival at Alitalia
08 Apr 08 |  Business

RELATED INTERNET LINKS
The BBC is not responsible for the content of external internet sites


FEATURES, VIEWS, ANALYSIS
Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit

BBC navigation

BBC © 2013 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific