Alitalia burning through €700,000 in losses a day

After nearly 30 months in bankruptcy the airline is burning through cash and loosing €700,000 a day (a little more in USD).

Having consumed nearly €900m so far the Italian Government is looking at coughing up another €350m.

It’s getting difficult trying to find willing lenders, even inside the governments own agencies- they don’t think they’ll ever get it back.

When the airlines potential investors like Delta, are only prepared to pay €110m for a sizeable stake its value is clearly not an asset to the state.

Even if an agreement was made, it’s predicated on some 1,200 job losses out of 12,000 and the unions are unlikely to let that happen. They’re quite happy with this loss making scenario being propped up by the state. For them nothing has changed and that’s fine.

Unions think that the government is so frightened of closing the airline it would rather nationalise it than let it fail. And again, that’s fine in the view of employees and unions as it means they don’t have to change.

Alitalia meanwhile, plods on. The only trouble is it’s costing every Italian in the country about 42 Euros a year to keep it going. If everyone had to put their hands in their pockets to dig out 42 Euros once a year then it might have a different outcome.