Italy Stuck With Bankrupt Carrier as Lufthansa, Atlantia Balk
- Ferrovie, Atlantia say conditions not in place to save airline
- Temporary nationalization on table, deadline set to be missed
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Italy risked failure in its latest attempt to bail out bankrupt airline Alitalia, after two companies involved in the rescue got cold feet, raising the prospect of at least a temporary nationalization of the carrier.
State rail operator Ferrovie dello Stato Italiane SpA, or FS, said Wednesday that conditions aren’t in place to form a group to save the airline from liquidation. That followed a similar statement from the Benetton family’s Atlantia SpA. A third potential partner, Deutsche Lufthansa AG, isn’t ready to commit equity, FS said.