Aircraft Sabotaged On Eve Of Talks

Alitalia, like many US airlines, is struggling to stay afloat. But Alitalia's problems run far deeper than that.

On Monday, one day before talks between management and labor were to resume, maintenance workers found damage to two MD-80 aircraft that appears to be sabotage. They found cut cables in the tail of one aircraft and a torn door seal on another.

Airline spokesmen said the discrepancies never compromised flight safety since they were reported before the planes flew. The UK's Times says this isn't the first time Alitalia planes have been sabotaged.

The Italian pilots’ association head Fabio Berti called the attacks "extremely serious" saying they "could have caused a massacre." He added, "I cannot believe anyone would be so irresponsible."

At this point, no one knows who the perpetrators are, but authorities are worried they had access to a "super-protected" area.

Analysts project a nearly $400 million loss for Alitalia this year. So far, workers have responded to suggestions of job cuts or privatization to save the airline with strikes and walk outs.

The Italian government wants to give the airline what it calls a $1.5 billion recapitalization loan. But, the European Commission thinks that would be just another in a series of government bailouts, and this one might be illegal under commission rules.

Italian Transport Minister Alessandro Bianchi says the Government wants to develop Alitalia, not to sell it off, but acknowledges possible merger partners won't be interested until Alitalia gets financially well.

Industry experts say the airlines' only hope is tough love from the Italian government. They say more help in the form of cash only postpones the need for a drastic restructuring and privatization.

FMI: www.alitalia.com