Alitalia Talks Collapse, 20 Flights Canceled Today

Bloomberg.com and BBC News are reporting that struggling Italian airline Alitalia canceled some flights today, following the withdrawal of a takeover bid.

RAINews24 says that Italy's Minister of Economy, Giulio Tremonti, has ruled out the possibility of nationalizing Alitalia, calling the idea "absurd." Invesment consortium CAI had hoped to buy Alitalia's profitable units, but several of the unions affected by the takeover rejected the plan. Italian newspaper Corriere della Sera reports that Augusto Fantozzi, Alitalia's Extraordinary Administrator, approached some European air carriers, including Lufthansa and Air France, about a possible buyout. So far, there are no takers.

Alitalia's operating license is at stake; without a new rescue plan, the Italian aviation authorities can ground the airline. The license will be reviewed September 22, and flights could be grounded as early as October 2, according to Corriere della Sera.

If you hold tickets for an upcoming Alitalia flight, it's wise to pay close attention to these events.

Update September 22: Alitalia is on the auction block, according to BBC News and other sources. If there are no takers, liquidation is the likely next step.