In a recent statement, Stefan Lauer, the executive board member of Lufthansa observed that the airline is highly keen to hold serious talks with the Austrian regarding a stake in Austrian Airlines. On the other hand, Lufthansa is also very keen on watching the Italian market, especially in the developments regarding the ailing national carrier, Alitalia. This week, Austrian government leaders noted that they were keen in selling some stake in Austrian Airlines, but would prefer to keep enough to see that the Austrian core shareholders and the government together retain about 25 percent stake.

Lauer said, "Austrian Airlines is an important partner for us. If the Austrian government comes to us and talks to us, we are of course interested in an intensive dialogue.”

At present, Austria owns around 43 percent of the airline, which is worth some EUR145 million euros (USD$225 million) as per current prices, through the government holding company OeIAG. In addition, a group of Austrian banks and insurers hold about 7 percent. The airline's own stake is about 3 percent. The remaining 43 percent is left for free float.

In a significant move on Wednesday, Ferrovial, the Spanish construction and airport company won the support of bondholder for a key step in a complex refinancing of more than GBP10 billion pounds (USD$19.5 billion) of debt on Wednesday. The firm also said that it is highly hopeful of sewing up the deal during this month. Notably, the company has been trying very hard for more than a year to renegotiate the debt linked to BAA, which was bought earlier by the firm in July 2006. However, this move was hampered by the liquidity crisis that struck the major part of the globe.

In a statement made on Wednesday, Ferrovial observed, "The outcome represents a significant step in the re-financing process. A London-based BAA bondholder agreed. It's removed the greatest uncertainty. The refinancing is largely done and dusted. Holders voted to accept BAA's proposal to move existing bonds into a new financial structure, backed by income from London airports Heathrow, Gatwick and Stansted and the Heathrow Express train service."

He too added, "There are loose ends to be tied up, including the arrangement of banking facilities for the airports group which are not regulated by Britain's aviation watchdog, such as Glasgow, Edinburgh, Aberdeen and Southampton."

In a significant move to rescue the Alitalia, arrangements have been made to inject about EUR1 billion euros from private investors. Il Giornale has reported this on Wednesday without citing any sources.

Notably, the paper is owned by the brother of Prime Minister Silvio Berlusconi. The paper has said that the investors are actively taking part in the rescue plan designed for the airline. Intesa Sanpaolo, is the government-appointed adviser for drafting this plan.

Il Giornale noted that the highlight of the plan is to seek to raise Alitalia's 40 percent share of the domestic market, by way of taking in 22 percent share of Air One, a smaller domestic rival.

With several moves are in progress to find a remedy to rescue Alitalia, the national airline of Italy, new doubts have come to the surface whether the government of the country can do something to save the nearly bankrupt airline. There are possibilities now that the final stage of the privatization process that has been kept long-standing might get delayed, since the Italian Officials have failed to suggest a suitable and workable proposal to rescue the carrier earlier last week, which was promised originally. Over and above, several unions in Italy have warned that they are highly concerned about the future of the national carrier, while they called upon Silvio Berlusconi, the conservative Prime Minister to announce a concrete and workable plan. The leader of the nation's transport union has also indicated that the managers of Alitalia have proved their sheer incompetence during the past decade and need to be replaced with officers who are more capable. In addition it has also been pointed out that the aging fleet of the airline needs to be updated.

The Transport union's secretary, Filt-Cgil Mauro Rossi, the transport union's secretary, noted that his organization is not getting adequate information on the plans of the company and criticized the Italian government that it is not offering official confirmation for executing its plans. On his part, the Prime Minister has confirmed in a statement made to a television host that the government will certainly succeed in presenting a viable and sound solution for the airline even before the commencement of autumn.

As per the present developments with respect to the issue, the rescue plan for Alitalia does not predict a merger with Air One, but contemplates on the acquisition of certain parts of the smaller Italian carrier. This was confirmed by the CEO of Alitalia adviser Intesa Sanpaolo during a statement made to a newspaper.

Following the failure of a plan to sell Alitalia to Air France KLM, Intesa was given the responsibility of drafting out the latest plan for the carrier to rescue it from breaking down.

The top highlights of Intesa's plan consists of a new Alitalia entity buying Air One's fleet, in addition to the authorizations for various routes besides contracts for new planes, however without taking on any of the debts of the carrier. This was said by Corrado Passera, the CEO while addressing La Repubblica during an interview. According to the paper, Air One chief Carlo Toto would get shares of the new Alitalia in return.

Making a prediction that Alitalia can only run through an injection of EUR550 million euros of cash during this year, the analysts of Citigroup have stated that the ailing airline could totally run out of cash towards the end of this year if there is no funds made available. Revealing the findings of a research into the present state of the airline, the analysts further added that the airline was actually on the track to wipe out all its cash by the third quarter. However, thanks to the emergency loan granted by the government, the airline could get a breathing room.

Citigroup noted, "The government loan of EUR300 million (which is subject to state aid investigation by the European Commission) should help Alitalia survive to the end of 2008 but could be insufficient from 2009 onwards."

Notably, Italy's government owns a 49.9 percent stake in Alitalia, which is moving ahead with its third attempt to rescue the airline following the failure of the plans to sell the airline to Air France-KLM.

According to the sources close to the situation, it is said that Alitalia held an extraordinary board meeting on Saturday to review the available options before the airline to decide on the most suitable rescue plan from its sale advisor.

The company sources confirmed that there was a three-hour meeting organised by the board. However, it declined to comment any further and did not issue a statement regarding the deliberations of the board. However, on the other hand, the media in Italy was abuzz with several speculations during the recent weeks over a plan that has been drawn up by bank Intesa Sanpaolo to find a remedy for the loss-making airline following the two earlier attempts by the airline that turned futile.

According to the newspapers, the proposed plan includes placing the airline under a special administration in addition to splitting its unhealthy units for prospective investors. However, Prime Minister Silvio Berlusconi has rejected any plans to announce Alitalia under bankruptcy.

In a significant move to save the ailing and loss making national carrier Alitalia, Italian Prime Minister Silvio Berlusconi claims to have arranged for funds. When quested by the journalists as to where the extra money comes from and who has come forward to give it, the Prime Minister refused to reveal any more details for the present.

After coming out of the cabinet meeting, Berlusconi however, confirmed that somehow, new funds have been made available and that Alitalia shall soon have a brand new slogan that would also stir the sense of patriotism among Italians. According to the Prime Minister, it appears that the slogan of "I love Italy, I fly Alitalia" motto would be featured prominently to revert the fortunes of the flagship carrier. A news report published in the Reuters says that when pressed once again as to where the Prime Minister found the funds for the ailing carrier, he said that he is working on it however confirming that the money is available for sure. 

On the other hand, since long, Berlusconi has long assured that he would form a consortium of Italian investors to purchase the national airline that is nearly bankrupt. However, till near past, it appeared that he could not be quite successful in this endeavour. From yet another angle, there have been efforts to merge the operations of AirOne and Alitalia, as a move to strengthen the national carrier. Also, it appeared that the airline might strike a partnership with a larger European carrier. However, a sound proposal still stands to be finalized by the Prime Minister.

The present media reports have revealed that the progressive plans across the industry to save Alitalia, the national airline from bankruptcy will involve not less than 5,000 job cuts. This measure shall form part of rigorous efforts to revert the long strain of annual losses faced by the company in addition to reversing its misfortune during the present times. The plan also requires the airline to fuse with AirOne, Alitalia's main domestic rival.

A report published in the Financial Times notes that if Prime Minister Silvio Berlusconi succeeds in finding a suitable way for the survival of Alitalia besides ensuring that it remains in the hands of Italy without being scooped away by any foreign firm, it can be deemed as the major victory for him, his government and the airline. Most notably, during an earlier move, Berlusconi opposed any plans that would enable the government of Italy to sell the airline to Air France-KLM. Instead he supported calling in Italian buyers.

It appears that there are strong hopes during present times than ever before that the government can sell off not less than 49 percent stakes of the carrier. However, industry experts warn that the labour unions are more likely to stage a fight when they come to know of the 5,000 job cuts that have been proposed. This is one of the most important reasons why they have been looking forward to Air France-KLM deal to buy the company.

According to the statement made by the European Commission on Tuesday, the Italian authorities had positively responded to its June 11 decision to investigate EUR300 million euros (USD$479 million) of Italian state aid for Alitalia.

A statement from the European Union's executive arm noted, "The Commission will make no comment on the content of the response, or any other comment on the substance of the investigation procedure, until it is concluded."

The present probe has in fact dawned as a setback to the efforts of the Italian government to avert an awkward financial collapse of the state-controlled carrier. On the other hand, the 18-month hunt for a buyer still continues on the background.

Aristide Police, the chairman of Alitalia observed on Friday that the plan for Alitalia's future has not been constructed around a condition of bankruptcy or by putting debts into a separate entity. On the other hand, in a move to assist the ailing airline, Intesa Sanpaolo is exploring a new rescue strategy, which ultimately failed to find a buyer when it was put up for sale by the government 18 months ago.

According to newspapers, the plan by Intesa Sanpaolo might call for a change to one of the bankruptcy laws of Italy or putting the debts of Alitalia into a separate "bad company" to bring the investments into the activities related to the daily operation. However, according to the Transport Minister Altero Matteoli, the time is not yet ripe for talking about changes to financial failure laws with respect to Alitalia, even before Intesa Sanpaolo presenting its plan.

Highlighting the sidelines of the conference, Police observed while talking to journalists, "I stand by the statement of the minister who spoke of a solution around continuing the business."

In a significant move, Alitalia is all set to receive a substantial injection of desperately needed cash, the total worth of it amounting to about 800 million euros. According to the information received by the Corriere della Sera, a leading Italian newspaper, many entrepreneurs in Italy appear to have agreed to invest hundreds of millions of euros in the airline, to enable it avoid having to file for insolvency.

At the background, Alitalia is in a highly troubled state as it continues to generate a loss of more than $1.5 million per day in addition to suffering a serious debt. Silvio Berlusconi has promised long back that he would trace the list of Italy-based businesses and wealthy individuals to purchase Alitalia from its present state to ensure that it remains in the hands of Italy in addition to saving it from bankruptcy.

However, any such move will invariably involve certain price to be paid by the airline and in this regard, Alitalia will be forced to take some painful and dramatic decisions to make the firm profitable once again. According to Media Sources, Alitalia might need to shed more than 5,000 jobs during the coming months.

As part of Italy's plan to salvage Alitalia, a fresh capital injection has been launched before hunting for the partner is resumed. According to its Chairman, this is one of the strategic ways in which the government is planning to settle the fate of the airline.

Following the bankruptcy of the carrier, earlier two attempts to sell its controlling stake failed. Following this, the government has taken up the present exercise to settle the fate of the airline. However, the government has not revealed the shape of the plan launched.

Addressing a parliamentary hearing, Giulio Tremonti, the Economy Minister of Italy said that Air France-KLM had already commenced the "actions" connected to Alitalia. In fact, an Italian Treasury source acknowledged the move as part of legal actions after the takeover of the carrier fell apart. Later, Tremonti said that he was certainly not aware of any legal actions by Air France-KLM against Alitalia and that the French airline was only evaluating industrial future of the Italian carrier.

Alitalia, the troubled Italian carrier, on Tuesday said that its bookings had picked up in recent weeks, following a steep fall in the month of April driven partly by concerns it might go out of air.

The state-owned company charged reductions in capacity from redesigning its route network for the decline in passenger bookings but accepted that ticket sales had declined almost twenty per cent following the failure of its scheduled sale to the French carrier, Air France-KLM.

The withdrawal of the French company from the offer left the Italian carrier on the brink of liquidation, which it managed to prevent with the help an emergency loan of 300 million euros from the government. It has made pressing requests for new capital to keep operating.

All the speculation and rumours that have been widely spread about the chances that Air France-KLM may still be interested in taking over Italian ailing carrier Alitalia after its unsuccessful attempt previously this year as the newly-elected Prime Minister now seem more willing to back such a deal, have been flatly rejected by Pierre-Cyril Spinetta. No wonder that such rumours were still hot-the story of Alitalia seems to be alive forever.

Mr. Spinetta spoke briefly at a conference previously today about this matter, rejecting it right away. Spinetta said that the Italian carrier talks showed a closed chapter and the one which the Franco-Dutch carrier was not likely to reopen.

However except this flat rejection, Spinetta did not go any further into this topic, telling media persons that he did not want to make detailed comments on this issue at this moment.

The European Commission (EC) seems to have a positive view on the decree of the government of Italy to help the troubled carrier Alitalia avoid liquidation, a government official has said, referring to discussions on an off the record level. Lots of speculations are going around about the troubled airlines Alitalia.

The remarks by Luigi Casero, Economy Undersecretary, appeared in a parliamentary bulletin on Thursday, turned up to talk down doubts that the EC will raise objections to Italy's 300 million euro emergency loan to the ailing carrier to keep it operational.

On Wednesday, an Italian paper reported that the EC would declare the emergency loan as illegitimate state aid and turn to have it suspended, which would abandon the troubled airline with a little choice other than liquidation.

The European Commission (EC) has reached a decision that Italy's emergency loan of 300 million euro for the ailing carrier Alitalia is unlawful state aid and must be suspended, reported la Repubblica.

The EC will officially open a course of action against Italy on the 11th of June, said the newspaper without mentioning its source.

The emergency loan, granted in the month of April by the previous government of Italy, was intended to keep the struggling carrier operating while newly elected Prime Minister Silvio Berlusconi attempted to gather Italian investors to prevent its liquidation.

Less than two months ago, Italian Prime Minister Silvio Berlusconi strongly opposed Air France-KLM bids to buy the ailing Italian carrier Alitalia, but now, he seems willing to admit that the Franco-Dutch company may serve as a good associate for the Italian carrier after all-a new twist to the story of this airline.

According to a report by Reuters, the Italian Prime Minister raised the issue of the Italian carrier and promising French support in the privatization of the ailing carrier when he met with France's Nicolas Sarkozy this afternoon.

At a press conference, Mr. Berlusconi said, "Alitalia will need to find accords with international partners and … Air France could be a good solution".

Italian Economy Minister Giulio Tremonti on Tuesday said that the European Union (EU) may think about allowing help for ailing carrier Alitalia if it is intended for privatising the Italian carrier. A lot of speculation is going on about the airlines' future.

At a press conference after a meeting of European Union finance ministers in Luxembourg, Tremonti said, "Aid aimed at market operations such as privatization is different".

In the month of April, the Italian government made a decision to give a loan to the troubled carrier to keep it operating until a new bidder is found after Air France-KLM pulled out of an arrangement.

On Tuesday, Alitalia, the ailing Italian carrier, said that it posted a 2007 loss of 495 million euros and said once again that it needed fresh capital quickly to keep operating. The decision of the government is still waiting about possible funding for the airlines.

In a statement, the Italian carrier said that the loss was narrower than a loss of about 627 million euros in the year-earlier period, after a 197 million euros record on its fleet pulled the results down, but it was still wider than 363.9 million euros pre-tax loss for the year 2007 revealed in the month of February.

The carrier's finances have been falling rapidly, making it a matter of concern that whether it can prevent bankruptcy following an intended takeover by Air France-KLM fell apart.

The economy minister said on Tuesday that a government decree converting an emergency loan of EUR 300 million euros to Alitalia into an asset on the books of the struggling carrier will come into effect this week, which will be very decisive in the fate of the airlines.

The decision, which according to the government is a temporary move, is made to secure auditor blessing for the unstable finances of the ailing airline.

The board of the struggling carrier was meeting on Tuesday to pass its 2007 accounts, but it may need to consider the decree published in the Official Gazette before going ahead with the earlier plans.

On Friday, Dubai airline Emirates said that it was not interested in taking part in a potential bid for Italy's struggling carrier, Alitalia, in contrast to the recent newspaper stories. There are lots of speculations about the possible takeover of Alitalia by many airlines, but no one of them has so far expressed their will.

A spokeswoman for Emirates said, "We are not interested. We are focused on our own organic growth".

In the early hours on Friday, Italian daily newspapers, Corriere della Sera and Il Messaggero, referred to market rumour that Emirates was in tune with a party being drawn together by an advisor to Prime Minister Silvio Berlusconi for a potential bid for Alitalia. However, as from the statement of the spokeswoman, it is clear that Emirates is not at all concerned about any bid over Alitalia.

Low-cost departures are being offered by Alitalia from London Heathrow to a number of destinations in the Europe. This is a very good chance for holidaymakers and tourists to grab their dream destinations with a very reasonable price offered by Alitalia.

Some of the fares (necessary with return tickets) available in the offer include:

Rome at a price starting from just £114; Milan at a price beginning from just £114; Trieste at a price beginning from just £126; Florence at a price starting from just £128; Venice at a price starting from just £128; Palermo at a price beginning from just £126; Naples at a price starting from just £127; Brindisi at a price beginning from just £126; and Catania at a price beginning from just £126.

Competent made incompetent in a binding offer of the auction provisions resulting Italy's government to strike down its planned sale of Alitalia SpA.

Bearing successive losses in six of the last seven years, the government declared the sale of its 49.9 percent stake in Alitalia last year. Only three groups out of a short list of five potential bidders applied to go ahead with an offer and examine the airline's financial data.

New York-based buyout firm MatlinPatterson Global Advisers LLC rejected the auction offers following the inspiration lost exhibited by others. Texas-based buyout firm TPG Inc. and Eastern Europe's largest airline, Fort Worth; groups led by Moscow-based OAO Aeroflot, and Rome-based Air One SpA, Italy's second-largest airline, all these potential contenders pulled out of the contention in the past seven weeks.