A View From Middle England - Conservative with a slight libertarian touch - For Christian charity and traditional belief - Free Enterprise NOT Covert Corporatism

Saturday, September 13, 2008

Alitalia Aligoing Next?

The airline business is in a parlous state. OK some niche players are doing well as are some niche services, but the bulk of the plane movements are not. Some are in dire straights. Alitalia is top of this pile. It hasn't helped by the fact that this airline is saddled with a union mentality that includes afternoon naps and wanton strike action. The Italian Government is keen to keep the flagship carrier, but it is like a flying Northern Rock. The EU is watching out for "state subsidies". I would suggest that it is best that the airline does a Swissair or Sabena.

The BBC says Prime Minister Silvio Berlusconi wants to keep the airline in Italian ownership with scooter manufacturer Piaggio the latest firm to be linked with a possible rescue deal. Does that tell us something? Italians make more out of scooters than airline flights!

The truth is, the airline business is on a financial knife-edge and to a great extent we have all encouraged them. Cheap flights? Umm?


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