August 30, 2008

Administrators in at Alitalia

ALITALIA, Italy's struggling national airline, went into administration yesterday with debts of over one billion euros (GBP 805 million).

The airline will be broken up and the profitable parts hived off to a new company. A partnership deal on international routes will be struck with another airline.

This strategy was made possible by the Italian government's decision on Thursday to alter the bankruptcy laws to allow the protection of assets from creditors.

Silvio Berlusconi, the prime minister, made the survival of Alitalia an election pledge this year.

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