Loan Raises Hopes Of Alitalia Surviving

The next Prime Minister of Italy has announced an emergency loan to Alitalia sparking fresh hopes that the airline will be saved. The airline is the national flag carrier for Italy is the loan no doubt reflects the desire to keep a national symbol by the Silvio Berlusconi.

The new prime minister Silvio Berlusconi will take office in approximately a month and will work with banks and firms that wish to invest to try to thrash out a rescue package to ensure the airline keeps trading. Details are not clear currently however now the government seem to be on the side of Alitalia there seems strong hope that the airline will not be going under any time soon.

The airline has been teetering on the edge of bankrupcy for months now and requires a $475 million (£240 million) loan. Now the money has been made available Berlusconi will have a few months to save the stranded airline. It is believed that experts are to examine the accounts of the airline to see where the problem may lie. However staff at the airline have been warned of a "painful reduction in personnel."

It is believed that the loan is to be investigated by the European Comission as they are believed to have been trying to cut down on state-investment in the aviation industry.

Published by: Jon Vickery