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Alitalia Teetering On Bailout or LiquidationSeptember 18, 2008 By: Travel Agent Central Contributor
Alitalia is on the brink of liquidation today as it awaits a decision by CAI, an investor group, on whether or not to rescue the government-controlled airline, Reuters reports. The airline, which filed for receivership protection earlier this month, said last week that it could not guarantee any flights after Monday. The Airlines Reporting Corporation (ARC) has processed Alitalia's remaining tickets in the meantime.
CAI, whose board meeting begins at 4 p.m. EDT,will withdraw from the bailout if its proposal does not get union approval. Only three of Alitalia's nine unions have said they are ready to accept CAI's offer. Nearly 3,250 of Alitalia's 20,000 workers will be laid off if the
bailout plan comes to fruition, as CAI would only buy the profitable parts of the
airline before relaunching it as a regional carrier.