26 September 2008

Last ditch lifeline for Alitalia

Desperate efforts to save Alitalia are continuing after a key union chose to support a rescue bid for the loss-making Italian carrier.

Italian investment group CAI has resumed talks over the ailing airline having pulled out last week in the face of continued union opposition.

But CAI now has the backing of four big unions, although five smaller ones have yet to agree the rescue package which would lead to job losses.

CAI has agreed to pump Ã&#pound;800 million into the airline on condition that the workforce is cut by 6,000 jobs from 18,500 and working practices are reformed.

A new deadline for accepting the CAI offer of October 15 has been set.

The airlineââ¬â¢s administrator Augusto Fantozzi said he is receiving expressions of interest over assets and activities of Alitalia group companies.

He had previously warned that the carrier would run out of money by the end of the month.

by Phil Davies

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• Will the Vatican bail out Alitalia?
  
  

  If Alitalia fails what will the Pope do for air travel? Could it be that the Vatican will bail out Alitalia? ....

  By JULIAN BRAY MCIPR,NUJ,MMC, Friday, September 26, 2008