Turnaround plan for Alitalia gains momentum
Published: 08 Sep 2008: Alitalia SpA will become a new company in November after a government-backed reorganisation, according to Industry Minister Claudio Scajola.
Referring to 1st November deadline, Scajola said, "I think the situation is such that this deadline will be respected. We need an airline, which can be competitive as soon as possible."
As per the information available, the overhaul of Alitalia SpA gathered momentum as the company created to take over the airline´s viable assets named two turnaround experts to run it.
Roberto Colaninno will become chairman of Compagnia Aerea Italiana, or CAI, and Rocco Sabelli, will become chief executive of the company, formed last month by 16 Italian investors.
Meanwhile, Alitalia´s suppliers have begun seeking deposits and payments in advance and the bankrupt airline is doing its best to continue payments.
Augusto Fantozzi said the airline had between 30 and 50 million euros in cash, less than the 70 million needed to operate on a monthly basis.
"From the declaration of insolvency, the suppliers have begun asking for payments in advance and guarantee deposits," he reportedly said an interview. "We will address all of the commitments. Nobody will be able to say that we are not paying."
Fantozzi was appointed by the government to oversee the bankruptcy proceedings at the end of August.
In the first six months of the year, Alitalia ran up losses of 547 million euros, which were seen widening to 800 million euros by the end of September, he said. Fantozzi said an international partner would be identified by the end of the month.