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Alitalia (AZPIa.MI: Quote, Profile, Research, Stock Buzz) will lose its operating license if a special administrator making a last-ditch attempt to sell the airline does not give Italy’s aviation authority a credible new offer or cost-cutting plan by Thursday.

Following the withdrawal of an Italian rescue bid because of opposition by pilots and cabin crew, the government-appointed administrator made a last attempt on Monday to attract offers, although previous bids to find a foreign buyer have failed.

Prime Minister Silvio Berlusconi’s spokesman Paolo Bonaiuti acknowledged that “buyers are not queuing up for Alitalia”.

Pilots and crew attempted to attract alternatives to the CAI consortium’s rescue bid on Monday by saying they would put up their own pay and pensions, totaling 340 million euros, “to back any serious, credible project for the relaunch of Alitalia”.

But so far, the only interest has been in the state-controlled airline’s heavy maintenance and cargo units as well as in leasing unused aircraft and laid-off staff fast cash. On Monday, Swiss investment firm AMA Asset Management Advisers said it was interested in buying or renting 30 Alitalia planes.

Flights continued as usual but Alitalia faces being grounded, and its assets liquidated, if there is no last-minute decision by dissenting unions to accept the job cuts and slimmed-down contracts that the CAI consortium had offered.

“Alitalia is flying with a provisional license,” the head of aviation body ENAC, Vito Riggio, told local radio ahead of talks with special administrator Augusto Fantozzi early on Monday.

He said afterwards that Fantozzi was given until Thursday to present “a report on the company’s prospects, any offers to buy it or a cost-cutting plan” in order to keep its license. 

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