Bankrupt Airline Buzz: Is Alitalia Next?

April 10, 2008 at 2:16 PM | by CourtScott | Comments (0)

Last week's billion-dollar Air France-KLM bid for our struggling amici at Alitalia was going once, going twice... and frustratedly yanked off the table. The generally-awful Italian carrier is now a strong contender for the title of "Newest Bankrupt Airline in April," and we're only 10 days in.

Alitalia's fate has been hanging in the balance of Italy's recent--and trademark--political turmoil. The drama could reach a climax this weekend when Italians head to the polls to elect a new leader, the majority of whom support media mogul Silvio Berlusconi --whose nationlistic stance doesn't gel with the Air France-KLM deal.

Why is Berlusconi voicing such strong opposition to the deal only a few days before elections? He's got a stronghold of support in Milan where AF-KLM plans to eliminate Malpensa airport as an Alitalia hub. A deal would lead to lots of job cuts.

So Berlusconi's keeping the faith alive for an Italian takeover, reports Reuters:

I hope the brainless talks with Air France on the future of Alitalia will end. Only then will the many business people who have told me they want to intervene come forward."

Huh. Last time we checked Italy's code of business conduct wasn't "Say what you mean and mean what you say," but maybe Berlusconi knows something we don't. As far as we know, an intervention has yet to happen.

Will the real counter-bidder please stand up?

Related Stories:
· My Big Fat Airline Merger [Forbes]
· Alitalia Clings on as Takeover Waits, Vote Looms [Reuters]
· Airline Mergers coverage [Jaunted]

[Photo: Mauricio Pellegrinetti]

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