Air Transport World

Alitalia.

Alitalia revised downward its earlier earnings estimates and Chairman Fausto Cereti says the carrier won't make a profit in 1999 because of slowing Italian economic growth and start-up problems at its Milan-Malpensa hub.

Alitalia faces an EU probe into whether it violated terms of its 1997 capital injection by exceeding capacity limits and undercutting competitors on some routes, and whether its productivity is lower than it projected when the package was approved. It also may have missed a payroll cost-cutting target for 1998. Additionally, EC probers are looking into rivals' complaints that Alitalia has better takeoff and landing slots and other (unspecified) unfair advantages at Malpensa. …

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