With 'rescue' plan dead, future looks grim for Alitalia

Paul Heymont 4/30/177:00 AM

Italy's struggling Alitalia airline has been lurching from crisis to crisis for several years, but the rejection by staff of the latest 'rescue' package has left its future in doubt, with banks unwilling to lend more and the Italian government saying there will be no bailout.

The rejected package would have imposed deep staff cuts and wage cuts as well on a staff that has already seen previous rounds of givebacks. The company, which is 49% owned by the UAE's Etihad Airways, has now begun bankruptcy proceedings.

Temporary administrators will run the company for several months, and will look to either find a purchaser, or liquidate the business. Transport Ministor Graziano Delrio said the company would be "sold to the highest bidder." Germany's Lufthansa group has been mentioned as a possible bidder for all or some of the line's assets and routes.

Photo: Alitalia employees protest last month

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