Alitalia airline moves one step closer to collapse
Despite the fact that investors were waiting in the wings for the go-ahead it seems as though a dispute with Unions has scuppered the final chance of saving the stricken airline Alitalia. It seems crazy that the Unions would rather reject the rescue package and see the airline go to the wall than agree to structured job loses and at least employment for some of the airlines employees. So what next?
This really was the last throw of the dice for the troubled airline which has been under bankruptcy protection for a number of days ahead of a hoped bail out by the government or investors. Now that those avenues have now been exhausted there is literally no where to go, finance is fast running out, debts are mounting and scheduled flights have been suspended.
This is the latest in the ongoing capitulation of the airline industry which only a couple of years ago was flying high with traffic numbers up and costs under control. But the credit crunch and the rise in the price of oil has caused a double whammy for the industry with cost rising as demand falls. There literally is nowhere for these troubled airlines to go except down.
Share this..
Related stories
Benefits cuts cost poorer households significantly
23/01/2015 Changes to taxes and benefits that the current government brought in have cost the average UK household £1,127 a year, according to the Instituted of Fiscal Studies (IFS). Tax and benefit changes include increased in National Insurance Contributions, substantial cuts to benefits and an increase in the main rate of value added tax. Low income- working aged households were hardest...
Read MoreThames Water asks regulator for permission to raise bills
12/08/2013 Thames Water has asked its regulator, Ofwat, for permission to raise water bills by as much as 12pc. This would come into force next year, and affect around 14 million people across the UK. If this move is approved, the average annual bill would rise by £29 before the effects of inflation are even considered. The justification by Thames water for this move is that it would b...
Read MoreWhat if the UK banking sector does not recover?
As we see the share price all Barclays bank fall by a massive 25% in one day, 40% in one week and only a fraction of its share price a year ago there are concerns that the UK banking sector is in turmoil. The government has poured billions upon billions of pounds into the sector and many are now asking the question "what will happen if the banking sector does not recover?".
In essen...
Sir John Gieve Predicts Doom And Gloom For The UK
When the deputy governor of the Bank of England starts talking about not being able to rule out a recession in the UK, it really is time to consider the worst. After months of trying to avoid the question it seems as though Sir John Gieve and his colleagues at the Bank of England are resigned to the fact the UK will formally move into recession in the short term.
Howeve...
Why does Lloyds bank need additional finance from the taxpayer?
Lloyds bank is rumoured to be on the verge of asking the UK government for an additional £5 billion from taxpayer coffers at a time when the UK banking sector has made strides but the likes of Lloyds bank and Royal Bank of Scotland still appear to be struggling. It seems that the call for extra funding centres upon the banks recent agreement to join the government's asset protection scheme and th...
Read More