The only alternative for Alitalia to an accord with Air France-KLM is bankruptcy, outgoing Transport Minister Alessandro Bianchi warned on Wednesday.
Speaking on a call-in radio talk show, the minister said that ''there is no more time for analysing and it is for this reason that I appeal to (Alitalia) unions to refrain from any false moves''.
''We must face the facts: Air France-KLM is ready to resume talks and the Alitalia board has verified that the airline is heading towards a critical financial crisis. Thus the time has come to make a decision because we are dealing with weeks and not months to avoid bankruptcy,'' Bianchi said.
By initially rejecting the Air France-KLM takeover offer, the minister observed, ''the unions did not realise that they had gone a step too far. But now it would appear that they are ready to see reason''.
Alitalia unions rejected the takeover offer, which involved buying the Treasury's 49.9% controlling stake in the carrier, because of planned layoffs for 2,100 employees and the proposed downsizing of the airline's activities in the air and on the ground.
''The government is ready to do its part by earmarking funds for (Milan airport) Malpensa and will intervene to overcome obstacles to the acquisition of the national carrier by Air France-KLM,'' Bianchi added.
In regard to a hypothetical offer by a consortium of Italian investors, the transport minister said ''we must not fool ourselves into believing that such a miracle alliance exists; it is just an illusion''.
''This because if such a consortium existed it would have stepped forward much earlier, given that it would have been composed of serious businessmen who were ready to shell out some real cash and not just blow out a lot of hot air,'' Bianchi explained.
''Above all, it would have had to have been composed of professionals with connections with the leading world airlines, the key players in the air transport sector. Anything else would be just smoke in the eyes not only of Italian employees but of Italians in general,'' the minister said.
The situation at Alitalia has been put on hold until after the Italian elections on Sunday and Monday, after which Alitalia unions are set to meet with management on April 15 to examine the airline's options.
The Alitalia board met on Tuesday and verified that at the end of March the carrier has 170 million euros in cash and cash credits for another 69 million euros.
This should be enough to keep the troubled airline operating in the short term, at least until a new Italian government can be formed.
Because of strict European Union regulations, Alitalia can receive no further state aid or loans unless it strikes a strategic alliance with another carrier, like Air France-KLM, which could guarantee the credit.
In the event that Alitalia goes into receivership, it could receive aid through the so-called Marzano Law which helps troubled enterprises to restructure and return to profit.
However, while this has worked for failed food giants Parmalat and Cirio, which had strong industrial bases but were strapped with massive financial debts, many observers do not believe it will work with Alitalia, which has problems that are both structural and financial.
Alitalia has debts in the neighborhood of 1.5 billion euros and continues to lose around a million euros a day.
