Just when European airline Alitalia could least afford bad publicity, news from the US Department of Transportation (DOT) tells of a fine of $125,000 levied against the airline for deceiving two passengers about their compensation rights.
After a flight cancellation, the two airline passengers who tried to get compensation discovered Alitalia’s website falsely claimed the airline’s right to refuse compensation was actually illegal. They later complained to the US Department of Transportation, which then cited Alitalia for falsely claiming their right to refuse said compensation.
Alitalia liquidity- courtesy CAPA
Reports from CAPA frame the Italian airline as struggling, especially after last year’s dismal loss of some €280 million euro. The airline is on a red ink binge since 2009’s restructuring that will put the carrier €1 billion in the hole if things don’t change soon.