EXCERPTS from an interview with the Economics Minister Giulio Tremonti to be aired Sunday on RAI television, but made available in advance by the domestic ANSA news agency.
I find it fasinating to observe the Alitalia situation and have been keeping track of it for several years now. The Airlines finacial problem is the Quintasential Italian labor problem. In the past several years since the Government bought 49% of the company they have appointed numerous CEO's to turned the company around and make it profitable. Each time the new CEO mention the word reform or reorganization, code words for lay offs, there are strikes and soon there is another new CEO. I can only imagine the complications and restriction the employees unions would try to demand in a sale to another owner be it Italian or anyone else. I'm sure the new buyers would also have a few demands of their own.
Story here from the International Herald Tribune: the EU has extended its deadline until May 30 for Italy to show that the loan complies with EU regulations, and the interesting statement:
quote:
The case is expected to be handled by the new Italian member of Commission, Antonio Tajani, a prominent member of the Forza Italia party who was designated last week by the recently elected conservative Prime Minister Silvio Berlusconi. Tajani will take over as the EU's transport commissioner.
An update from Bloomberg is here. What I get from this and other sources is that the EU is disapproving the loan, but it will not be cancelled; Alitalia has the money. It was initially said that the loan would tide them over for a year while they found a permanent buyer, but the Bloomberg article says it covers three months of jet fuel.
It sounds as if that very contentious 300-million euro loan isn't going to go very far....covering only three months' worth of jet fuel bills. What will Alitalia do after it burns through that?
No other carrier seems willing to touch Alitalia any longer. I wonder what Berlusconi's next move will be?
