Two airlines shun Alitalia's plight

ROME, Sept. 19 (UPI) -- Hopes of reviving the Italian airline Alitalia are dwindling after the government said nationalizing the airline was not an option.

The odds dimmed earlier when two European airlines said they would not make offers for part of the company. But, Italian Economy Minister Giulio Tremonti said Friday nationalizing the company was "impossible," the ANSA news agency reported.

Both British Airways and Lufthansa have balked at making offers, BA claiming it was "not even interested in taking a stake" in the rescue plan. Lufthansa said Alitalia's plight "does not concern us," ANSA reported Friday.

How close is the company to folding? A liquidation sale has not been announced, but ANSA reported a number of flights from Rome's Fiumicino airport have been canceled.

A business consortium called the Compagnia Aerea Italiana has been assembled to design a rescue plan for the floundering airline, but their plans have also met with resistance from unions, ANSA said.

CAI's plan included staff reductions and pay freezes. They were also pursuing a deal to turn nine separate union contracts into one.

The stalemate with unions and the lack of foreign intervention could spell the doom for Alitalia, which faces an imminent threat of a liquidation sale.