Global carriers line up to replace Alitalia

After a 71-year run, Italy’s bankrupt Alitalia may soon slide into the history books. Several international players are now looking to carve up the air travel market in Europe’s fourth-largest economy, with two Persian Gulf carriers leading the way. Italian taxpayers have been pouring money into Alitalia for decades, but the bottom seemed to fall out when minority owner Etihad Airways capitulated to steep losses. Back in 2014, the Abu Dhabi-based carrier took a 49% stake in Alitalia with plans to slash costs and focus on longer international routes from Rome and Milan, the competitive turf where low-cost airlines such as easyJet and Ryanair had made fewer incursions. That plan faltered and Alitalia floundered. Etihad, which has made a point of investing in ailing airlines, decided to end the pain and cut its ties. Alitalia’s subsequent bankruptcy was followed by E900m in government bridge loans to keep it aloft through later this year, but the prospect of additional assistance is uncertain given the political disarray tied to Italy’s recent elections. Potential bidders are plotting various strategies for overhauling or dismantling the airline, salvaging the best bits of its network and fleet or seeking deep, permanent cuts. Alitalia’s bankruptcy administrators are working toward an April 30 deadline to assess offers. Story looks at potential bidders.<br/>