Alitalia May Be Grounded Within a Week, Matteoli Tells Sole

By Andrew Davis

Sept. 21 (Bloomberg) -- Alitalia SpA will be grounded within six days if a buyer isn't found for the insolvent carrier, Italian Transport Minister Altero Matteoli said in an interview with Il Sole-24 Ore.

Vito Riggio, head of Italian airline regulator Enac, meets with Alitalia officials tomorrow to discuss revoking its temporary license if there isn't evidence the carrier has enough funds to operate for three months, the paper said. Riggio has said flights would be grounded seven to 10 days after revocation, Sole reported.

``There isn't that much time, the decision will have to be taken sooner,'' Matteoli told the newspaper.

The only way for the airline to survive is for unions to reverse course and support an Italian bid for the carrier's commercial flight business by CAI, an investment group led by Piaggio & C. SpA Chairman Roberto Colaninno, Matteoli told the newspaper.

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To contact the reporter on this story: Andrew Davis in Rome at abdavis@bloomberg.net