Friday, September 19, 2008

Alitalia Is Hanging On By A Thread

Alitalia's future was "hanging by a thread" on Thursday, Italy's labor minister said, as unions deliberated about whether to accept a last-ditch effort to relaunch the airline.

The unions faced a deadline of 3:50 p.m. (1350 GMT) to sign the plan backed by a group of Italian investors led by Roberto Colaninno, chairman of Piaggio, a scooter maker.

The investors were to meet 10 minutes later and said they would withdraw their offer, if the airline's nine unions have not supported it.

"It is difficult to say what will happen, but I believe that Alitalia's future is truly hanging by a thread," Labor Minister Maurizio Sacconi told Italy's private Canale 5 television.

With no other offers on the table, Alitalia's administrator, Augusto Fantozzi, has said that would mean the national carrier's failure. The airline would then take the account books to court to begin liquidation proceedings.

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SheR. said...

I've heard about it on the news over here. It seems it's not the only airlines in trouble now!