Alitalia remains on the ‘edge of an abyss’ after an investor group walked away from a rescue bid.



Key unions representing pilots ands cabin crew vetoed plans by investor group CAI which would have led to around 3,000 job cuts.



The Italian cabinet is to debate the crisis at Alitalia today. The airline is reportedly losing $3 million a day and may run out of funds by the end of the month. It has been operating under government bankruptcy protection for three weeks.



Prime minister Silvio Berlusconi said: “We may be on the edge of the abyss” after CAI withdrew its offer.



by Phil Davies