Financial Times FT.com

Alitalia rescue faces critical hurdle

By Guy Dinmore

Published: July 14 2008 18:27 | Last updated: July 14 2008 18:27

A rescue for near-bankrupt Alitalia is being drawn up that envisages at least 5,000 job losses at the Italian flag carrier and a merger, backed by Italian investors, with Air One, its smaller independent rival.

Continued Italian ownership of the airline and the sale of the state’s 49.9 per cent stake would signify a major political victory for Silvio Berlusconi, prime minister.

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