Alitalia rescue deal gains some union support

Alitalia’s largest unions have agreed to an initial deal proposed by the potential buyers of the airline, raising hopes that a collapse and grounding of the carrier’s aircraft could be averted. The unions representing the pilots and flight crew, however, have balked at the deal, risking the airline’s continued operation.

The country’s four major unions, CGIL, CISL, UGL and UIL, and the consortium of investors interested in purchasing the ailing airline, have agreed to a rough draft of a rescue plan that would see around 3,000 jobs cut, but leave 12,500 employees at the “slimmed-down” airline. Thousands of other workers are employed in units that the company would spin off.

So far on Monday, air traffic was normal at the country’s main international airports, in Milan and Rome, according to airport officials, although the Italian civil aviation authority said just days ago that Alitalia’s operating licence could be forfeited as suppliers are wary of providing the airline with jet fuel.

Negotiations resumed on Monday morning to deal with the thorny issues of job and salary cuts, and there is no certainty that an agreement will be reached.

Alitalia operations are now overseen by a bankruptcy commissioner, and it is at risk of becoming the first major European national carrier to fail since the collapse of Swissair in 2001.

The Italian flagship carrier has had to deal with political interference for many years, as well as labour disputes, financial difficulties, and most recently the cost of jet fuel, which skyrocketed in the last year, causing difficulties for many airlines globally.

The airline, as of July, was carrying debt of nearly €1.2 billion, and has not reported a profit for nine years.

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