British Airways has no interest in Alitalia according to report

Market insiders have suggested that British Airways will not strike a deal with Alitalia, despite speculation that it might be interested in partnering with the badly indebted, loss-making Italian flag carrier, which Prime Minister Silvio Berlusconi’s government is desperate to sell as soon as possible. Clear indication from market analysts that BA would not strike an alliance with Alitalia is one in a series of rejections that the troubled Italian airline has had to deal with in recent weeks. This, however, is in stark contrast with media reports appearing only a couple of days ago which claimed that Alitalia may try to strike a partnership with Air France, Lufthansa, as well as British Airways. When Reuters News attempted to contact British Airways earlier today for comment, a company spokesperson indicated that the carrier did not wish to respond to market speculation.

The Berlusconi government is expected to announce the precise details of a plan aimed at saving Alitalia, which now generates a staggering loss of €1 million per day. If media reports are accurate, this plan would involve dividing the national airline into two companies. Under the plan, the state would take over Alitalia’s liabilities, while private investors could start afresh with the second company, which would boast a clean slate. It now appears likely that the first step in this process would be for Alitalia to ask for bankruptcy protection in the very near future.
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