Introduction Alitalia is the flag carrier airline of Italy headquartered in Rome; it operates services to 28 domestic and 74 international destinations. The airline Hub is Leonardo da Vinci International airport, Rome. Although Malpensa international airport, Milan is currently one of Alitalis hubs. Alitalia was established on 16 th September 1946 as Aerolinee Italiane international, more commonly known as Italia, an Italian portmanteau of the words ali (wings) and Italia (Italy). It started operations on 5 th may 1947, in which year it carried over 10,000 passengers. The inaugural flight was with a fiat G-12 Alcione, piloted by Virginio Reinero from Turin to Catania and Rome. The first international flight left a year later, travelling between Milan and cities in South America. On 31 st October 1957, Italia merged with Linee Aeree italiane and took on the name of Alitalia Linee Aeree Italiane. The Italia fleet consists of the following aircraft Boeing 777-2000ER with a total passenger of 291, Boeing 767-300ER with a passenger of 214, McDonnel Douglas MD-11, Airbus A321-100, Airbus A320-200, AirbusA319-100, McDonnell Douglas MD-82, Embraer 170, Embraer ERJ 145, ATR 72, Boeing 767-300Er, and Airbus A320-200. (Loudon and Della 1993). News News attempt are in the making to sell the 49.9% stake of the Italian government. On December 6 th , 2007, three parties, air France-KLM group, an investment group lead by business men and lawyer Antonio valdassare, and the Italian domestic carrier Air one presented offers to purchase Alitalia. The board of directors of Alitalia will announce winning bidder and aim to have a sale agreement in place by 2007 Christmas. Italy’s transport minister Alessandro Bianchi said in 2007 does not favour a further slippage of the ongoing privatization of the states 49.9 pct stake in Italia SPA into next year. Financial situation Italia has lost money for years due to labour problems and government and political interference with the attempts to solve them. it has only reported only one year of a profit since its foundation In 1946.Italia has reported net losses of more than $ 2.6 billion between 1999 and 2005.The Italia government and other organizations have invested $2.8 billion of fresh capital since 2002.Italias troubles are severe that Consob, Italy’s stock market regulator, requires it to report monthly on its debts and cash position. By the end of May 2007 had risen to $1.05 billion and net available funds had fallen to $ 466 million. The Airline is close to facing bankruptcy if it keeps losing money at the current rate. The government may no longer offer support to the failing airline since it has been forbidden by the European union to inject new capital. Italia has several opinions like attracting fresh capital from commercial banks or the selling the stake of the Italian state or devising a way for the Italian state to inject new capital in accordance with European rules. (Brooms and Bitner, 1981). Italia’s complaints for its bankruptcy The company’s attitude towards its customers has sparked both testimonials and complaints. Italia filed a law suit against the website AlitaliaSucks.com in the Us Courts claiming the violation of various trademarks laws, the anticybersquatting consumer protect