Deloitte refuses Alitalia accounts sign-off
Big Four firm Deloitte has refused to sign off the accounts of Italian airline Alitalia due to uncertainties surrounding the company's finances and business plan.
Link: For more audit stories
Deloitte said that the company’s financial situation had deteriorated significantly last year and at the beginning of this year. It warned that Alitalia could face liquidation unless decisive measures are taken.
The company reported a net loss of £343m last year and in going through a major resturcturing that has cost several key executives their jobs. It is currently in negotiations with the Italian state and the European Commission over a financial bailout.
It is expected to join the merger of rival airlines Air France and KLM if it can turn its fortunes around.