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Daily Digit: Alitalia default fears

Wednesday, October 09, 2013 - 01:10

Oct 10 - Italy's national carrier is at risk of bankruptcy, unless it can secure capital and a new credit line. As Kirsty Basset reports, it's not the first time the airline's faced financial troubles.

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500 million euros - that's the amount Alitalia needs to stay afloat. Italy's loss-making national carrier needs 300 million euro in capital - and a 200 million euro credit line from banks. Unions say the company could default in a few days if a solution isn't found. The airline's been rescued from bankruptcy before - back in 2009. Since then it's managed to accumulate losses of more than 1 billion euros and a similar sized debt. It's also fallen behind on fuel payments - and according to a government source - could be forced to ground its fleet in the next four or five days. But Italy's Civil Aviation Authority says there are no signs operations will be halted. AirFrance-KLM tried to take control of the company in 2008 - but was blocked by the then Prime Minister Silvio Berlusconi. They tried to help a few weeks ago but couldn't agree any terms. Italian shareholders aren't keen to give up control of strategy - and will be looking to sell for the right price.

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Daily Digit: Alitalia default fears

Wednesday, October 09, 2013 - 01:10