Italy may be just days away from losing its national carrier Alitalia. Italy’s Civil Aviation Authority says it may withdraw the company’s licence by midweek if no cost reduction rescue plan is agreed on.
Alitalia is on the brink of bankruptcy. It has a debt of well over a billion euros and is losing three million euros a day. According to Italian press reports, the company’s bank accounts in Israel have been frozen with three hundred and fifty million euros owed to the authorities.
The government says the company is now effectively up for auction as all previous rescue plans have collapsed, and there are no bids on the table.