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Alitalia Not Finished Yet

September 25, 2008 By: Travel Agent Central Contributor

A few days after Italian investment firm Compagnia Aerea Italia (CAI) withdrew its bid for Alitalia due to a lack of union approval, the Italian airline may still have some life in it. Italy’s largest union, CGIL, made a 180º turn from its initial refusal to back the offer from CAI, and its leaders are meeting with Gianni Letta, senior adviser to Prime Minister Silvio Berlusconi, today. Union leaders have stated that CAI's offer of more stringent working practices and decreased pay meant that the union could "sign up" to the package

Meanwhile, Augusto Fantozzi, special commissioner of Alitalia since it filed for receivership protection, is meeting with officials from the country's civil aviation authority, ENAC, which has said it will withdraw the airline’s operating license this week if it does not devise a rescue plan that cuts costs. If a buyer does not step in soon, the airline faces closure as early as September 26 and as late as October 1.

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