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Alitalia sale delayed after string of woes at European airlines

The sale of Alitalia has been delayed until next April, adding to uncertainty in the European airline industry following woes at Ryanair, Air Berlin and Monarch Airlines. Pushing back the sale to April may prevent it from flaring up as an issue in Italy’s general election, which is likely to take place in March, according to Italian political analysts. Italy’s economic development ministry blamed the delay on “extraordinary events” changing the “strategic dynamics” in the sector, including the break-up of Air Berlin, the failure of Monarch and the “operational crisis” at Ryanair. Alitalia, which is run by three government-appointed commissioners after collapsing into bankruptcy in May, on Monday received a bid from Lufthansa for its global network traffic and European domestic point-to-point business. Germany’s largest carrier confirmed it had submitted an offer letter “expressing its interest in establishing a ‘NewAlitalia’,” saying it could help support long-term economic prospects. EasyJet also said on Monday that it had expressed interest in some assets of a restructured Alitalia. The Italian government had been hoping that Alitalia would not be broken up, so it was giving preference to bids for the entire company.<br/>

Lufthansa, 6 others bidding to take over bankrupt Alitalia

Lufthansa and Easy Jet are among seven airlines that made binding offers Monday to take over all or part of Alitalia, the Italian carrier that declared bankruptcy in May. Alitalia confirmed it received seven envelopes containing bids by the evening deadline, but provided no details. Lufthansa earlier confirmed it submitted an offer to buy at least part of Alitalia's aviation business, including global, European and domestic routes, while apparently shunning the ground and handling business. Easy Jet said it bid for "certain assets" of a restructured Alitalia, but did not give specifics. The Italian government wants to close the sale by the end of April, followed by a period of evaluation by European anti-trust authorities that would likely delay a completion of any deal until the end of summer. The tender offer made clear that bankruptcy administrators want to avoid a fire-sale of Alitalia assets, giving preference to any offer that takes on the entire airline, which has 8,000 aviation employees, including pilots and flight attendants, and an additional 3,600 on the ground. But the bidding process allows for the possibility to isolate either the aviation or handling businesses. Lufthansa did not provide detailed information, including how much the bid is worth and how much staff it would retain. Lufthansa said in a statement that it wanted to establish a "NewAlitalia," that it said "could develop long-term economic prospects." If successful, Lufthansa would add Alitalia assets to those it is acquiring from Air Berlin, both of which were controlled by Etihad airlines until the Gulf carrier cut financing.<br/>

Police seek arrest of Korean Air chief for fund misappropriation

Police requested an arrest warrant for the chief of Korea's top airline Monday for his alleged misappropriation of company funds for home renovation. Cho Yang-ho, CEO of Korean Air Lines and chairman of Hanjin Group, is under investigation over suspicion that he siphoned off 3b won (US$2.65m) from company coffers to pay for the remodeling of his house in central Seoul between May 2013 and August 2014. He faces charges of breach of trust. When he was questioned last month, he denied any wrongdoing, saying he had no knowledge of the misappropriation. Police also sought a warrant to arrest a group executive in charge of construction involved in the suspected crime. The allegations were raised during a separate police investigation into possible tax fraud by an interior renovation company that works largely for business conglomerates. In early July, police investigators raided the airline's headquarters in western Seoul and confiscated accounting books and contract documents.<br/>

Passenger says Delta crew stopped her from singing anthem

A Georgia physician said her plan to honor a fallen soldier by singing the US national anthem aboard a Delta plane carrying the soldier's casket was stopped by a flight attendant who told her it would violate company policy. Dr Pamela Gaudry of Savannah said she and fellow passengers were told "to stay quietly in our seats" as an honor guard escorted the casket from the plane Saturday at Hartsfield-Jackson Atlanta International Airport. A flight attendant told her that singing "The Star Spangled Banner" would make passengers from other countries uncomfortable, she said. "I couldn't put up with that," Gaudry said Monday. "I wouldn't be offended if I was in their country." Gaudry said she kept quiet until she was off the plane. Then she found an unoccupied stretch of the airport terminal where she took out her cellphone and self-recorded a 6 minute, 30 second video that she posted on Facebook. Gaudry said she was flying Saturday from Philadelphia to Atlanta when the pilot told passengers the plane was carrying the remains of a fallen American soldier. She said she began asking other passengers if they would join her in singing the anthem as the casket was taken off the plane. Many agreed enthusiastically, she said. Anthony Black, a spokesman for Atlanta-based Delta, declined to comment Monday on the specifics on Gaudry's account.<br/>