The failing Italian airline Alitalia posted a 2007 loss of $780 million and issued an urgent appeal for new capital to keep flying. The loss reported in a statement issued late Tuesday compared with a $627 million loss posted at the end of 2006. The airline said the losses were due to the rising cost of fuel, competition from low-cost carriers, labor tensions that deter passengers and a devaluation of its fleet. In February, Alitalia announced a 2007 pretax loss of $574 million. Alitalia said the failure to come up with a plan to save the airline has reduced its credibility. “In any case, we repeat the need for more capital as quickly as possible,” the Alitalia statement said. Air France-KLM walked away from an offer after an impasse with unions, and the new government of Premier Silvio Berlusconi has said it will put together a consortium of Italian investors to put up cash alongside financial institutions and an industrial partner to relaunch the airline. However, unions and opposition politicians have complained in recent days that nothing concrete has yet occurred. The government has pledged a $473 million emergency bridge loan to help keep the airline flying. Finance Minister Giulio Tremonti said a decree converting the loan into an asset on Alitalia's books should take effect on Thursday.
