Wednesday, September 24, 2008

Alitalia pleads for buyers

Alitalia hung out a "for sale" sign again Tuesday, taking out ads in four newspapers to solicit offers for any or all of the bankrupt airline's assets.

The move comes after an Italian investor group made official Monday its decision to withdraw an offer to take over the profitable assets of the Italian air carrier.

It was the third failed attempt to sell the long-troubled airline in less than two years as Italy struggles to keep a four-year-old pledge to the European Union to privatize the flagship carrier.

The airline, which has about 20,000 employees, has been battered by high fuel and labour costs that have made it unprofitable.

Alitalia is seeking "whoever might be able to guarantee the continuity, in the medium term, of the transportation service … to submit its expression of interest," reads the notice published in the Italian newspapers Corriere della Sera, il Sole-24 Ore and la Repubblica, as well as the London-based Financial Times.

The notice, initially posted Monday evening on the airline's website, urges potential buyers to take into account the need for a speedy transaction.

With Alitalia's future still unclear, Italian Premier Silvio Berlusconi delayed his departure to New York for the UN General Assembly, where he's scheduled to speak on Thursday. It was unclear when he would leave.

Meanwhile, the first report of a creditor moving to seize assets from Alitalia was confirmed. The Israel Airports Authority has an application pending with a court in Tel Aviv to recover $500,000 US owed by Alitalia, a spokesman said Tuesday.

Barring a valid offer, Alitalia's extraordinary administrator — appointed after the airline declared bankruptcy Aug. 29 — said Alitalia's clock would stop ticking Oct. 1.

"Probably we will have time until next Tuesday, which means in effect that, as of today, Sept. 30 is the last day possible" of operation, administrator Augusto Fantozzi said Monday.

Fantozzi told reporters that this month's payroll, due Sept. 27, will use up much of what little cash Alitalia has left. He acknowledged that the airline's chances for survival appear bleak.

With files from the Associated Press

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