Italy stuck with bankrupt carrier as Lufthansa, Atlantia balk

Italy risked failure in its latest attempt to bail out bankrupt Alitalia, after 2 companies involved in the rescue got cold feet, raising the prospect of at least a temporary nationalisation of the carrier. State rail operator FS said Wednesday that conditions aren’t in place to form a group to save the airline from liquidation. That followed a similar statement from the Benetton family’s Atlantia. A third potential partner, Lufthansa, isn’t ready to commit equity, FS said. The prospect of a failed agreement comes just ahead of a Thursday deadline for a binding investment plan. The govt set the timetable in a bid to resolve a decade-long headache and save jobs at the carrier, which has been estimated to lose about US$789,000 a day and hasn’t posted a profit for at least 15 years. <br/>