Last minute union support for Alitalia rescue

Desperate, last-minute efforts to save Italian flagship carrier Alitalia continue as one of the key unions representing airline workers has thrown its support to a rescue bid for the trouble airline.

The Italian investment group CAI is once again involved in discussions on a rescue plan for the financially-troubled carrier. It pulled out of negotiations last week when several unions rejected the group’s proposal.

CAI’s plan is now backed by four of the larger unions, although five smaller unions are not yet on board with the rescue plan that involves job cuts.

As part of the agreement, CAI will inject £800 million into the airline, but requires that 6,000 of the 18,500 jobs are cut from the carrier’s workforce and that a number of working conditions are reformed.

The new date set for accepting the offer put forth by CAI is 15 October.

Augusto Fantozzi, the government-appointed administrator for the airline, has said that he continues to receive expressions of interests regarding the assets of various Alitalia group companies.

Earlier in the month, Fantozzi issued a warning that the airline would run out of operating capital by the end of September.

www.alitalia.com