Alitalia rescue hits new problem

Consortium needs more time to raise money

The rescue of the near bankrupt Alitalia has hit a new hold up.

CAI, 16-strong consortium of businessmen planning to buy Italy's national carrier, is unable to raise the required €427m before the middle of the month.

Reuters reported that Augusto Fantozzi, the airline's administrator since it went into receivership in September, said the deal should have been completed on Sunday (November 30).

But the money to buy the carrier would now be paid on December 12.

CAI members have approved the raising of €1.1bn which includes the purchase price and the assumption of the airline's €625m debt.

Under the deal, CAI will buy the Italian government's 49.9% stake in the carrier and then merge it with rival Air One to form a new, streamlined airline.

The deal is expected to get the go ahead from the regulatory authorities.

CAI is still in talks with both Air France KLM and Lufthansa over plans for one to buy a possible 20% stake in the new carrier.

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