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Alitalia won't go bust,premier says

Berlusconi urged to report to parliament on '5, 000 lay- offs' (ANSA) - Rome, July 30 - Ailing national airline Alitalia will not go bankrupt, Premier Silvio Berlusconi has assured. Berlusconi said a rescue plan was taking shape to turn around the loss-making carrier, which is being kept aloft by a government loan. In reported remarks to party Senators Tuesday night, he confirmed that this would involve 5,000 lay-offs but said this was the ''lesser evil'' compared to the loss of all 20,000 jobs if the airline went bust. The premier said a consortium taking shape would have the money to buy 90 new planes and the clout to restore ''major intercontinental routes, starting with new flights to China,'' participants at the Tuesday night meeting reported. Faced with intense criticism over the failure of a tie-up with Air France-KLM... [read full story]                    

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