Like an endless low budget Italian TV soap opera, the Alitalia saga started a new episode yesterday.
The October 23rd deadline for investors passed with the Italian government yet again not seeing the big picture and settling on investors. It basically thinks they can’t be trusted to keep the airline going in an almost unchanged structure.
The governments attitude seems to be it can’t be seen to give up on the airline and risk 7,000 jobs. Loosing the flag carrier would just look too bad.
So it seems to be placing difficult conditions in the way of investors by tying their hands, and one by one they drop out.
The airline has been in effective bankruptcy since May 2017, surviving on cash flow and loans extracted from the Italian Post Office.
Ironically it’s not been doing to badly, and is operating more or less normally. The bankruptcy let it ditch many unproductive routes and aircraft and axe some staff.
Meanwhile another November 21st deadline – the sixth – has been set for a review of investors.