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Alitalia Sees euro380 million operating loss in 2006

Alitalia Sees euro380 million operating loss in 2006

Alitalia SpA said it sees operating losses of about euro380 million (US$490 million) for fiscal year 2006, as the government waits to discover Monday who is interested in buying the struggling carrier.
Alitalia said in a statement late Sunday that operating losses up to Nov. 30 amounted to euro197 million (US$254.15 million) following a request from Italy's securities regulator, Consob.
The Rome-based airline said the losses were a result of strong competition in the market from low-cost airlines, higher fuel costs and lower revenues due to strikes by employees that grounded flights.
The carrier said it has sufficient liquidity for "more than 12 months" of operations.
The Italian government has put the airline up for sale, asking for expressions of interest by Monday. The center-left government, which holds 49.9 percent of Alitalia, said at the end of 2006 it wanted to sell at least 30.1 percent.
In announcing conditions for the sale last month, the government said buyers must have minimum capital of euro100 million (US$132 million) and must continue employing Alitalia's 18,000 workers, keep the national routes and maintain the carrier's Italian identity.


Updated : 2021-07-30 10:14 GMT+08:00