If ALITALIA fails, Italy fails
It's a bit late for that... the whole country has been unfit for purpose for at least five years.
Alitalia will never go bust - the govt. will step in
That's what the Pilots union are pinning ALL their hopes on. When you have a job in Italy, in many cases you got it by using a family connection or actually bribing an official to get it. Italian labor law makes it extremely hard to terminate someone for poor performance, so.....
.....Much of the time the attitude is... This is my job, it is bought and paid for. That's a difficult mentality to get past.