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Reuters
Published: September 29, 2008
ROME: An investor bailout of Alitalia finally won the support of the last two unions on Monday, clearing a major hurdle for the relaunch of Italy's national airline which had appeared doomed to liquidation.
Hold-out unions SDL and AVIA representing cabin crew and ground staff followed the example of pilots who changed their minds and signed up to the deal with Italian consortium CAI, whose offer had been withdrawn but was revived last week.
The sudden reversal of fortunes for the money-losing carrier looks like a victory for Prime Minister Silvio Berlusconi, who returned to power in May vowing to rescue the airline.
Alitalia still needs a foreign partner to compete over the long-term and the deal could also face scrutiny from European Union regulators over whether it restricts competition and benefited from unfair government aid.
The airline's assets must also be valued and domestic rival Air One's assets acquired by CAI before Italy's flag carrier can be reborn.
Both Air France-KLM and Lufthansa have shown interest in a relaunched Alitalia as the airline sector consolidates amid crippling oil prices.
But the government of Berlusconi -- who opposed an earlier Air France-KLM offer under the previous center-left government on the grounds that Alitalia should remain Italian -- insists any foreign airline must only have a minority stake.
"It's up to CAI to decide what's the best offer for our country, but it must be a minority," Industry Minister Claudio Scajola said, hailing the "government's mediation to find a good contractual agreement."
International Herald Tribune
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Unions backing Alitalia rescue
Page last updated at 15:25 GMT, Monday, 29 September 2008 16:25 UK
A 1bn-euro (£800m; $1.45bn) bail-out of Italian airline Alitalia has won the support of the last two unions who had been opposing the deal.
The support for the rescue package could help clear the way for a relaunch of Italy's flag carrier.
The airline had appeared doomed to liquidation until the rescue emerged.
Last week, the Italian civil aviation authority, ENAC, agreed not to revoke Alitalia's licence to fly after a revised rescue plan was approved.
The SDL and AVIA unions, which represent cabin crew and ground staff had opposed the plan.
However, they have now followed the example of the airline's pilots and changed their minds.
International investment hope
The Italian consortium putting forward the rescue package, CAI, had withdrawn its offer earlier this month after it failed to gain the backing of all Alitalia's unions.
However, the deal was revived last week.
The consortium, led by chairman of the Piaggio scooter firm, Roberto Colaninno, has pledged to inject 1bn euros into the airline, strip away unprofitable parts of the business and then merge it with Italy's second-largest carrier, Air One.
They also hope that an international airline, such as Air France-KLM or Lufthansa will take a minority stake in the firm.
Prime Minister Silvio Berlusconi, who was re-elected in May, had vowed to rescue the airline.
Alitalia is estimated to be losing more than 2m euros every day
BBC News
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Será que agora vai?
Published: September 29, 2008
ROME: An investor bailout of Alitalia finally won the support of the last two unions on Monday, clearing a major hurdle for the relaunch of Italy's national airline which had appeared doomed to liquidation.
Hold-out unions SDL and AVIA representing cabin crew and ground staff followed the example of pilots who changed their minds and signed up to the deal with Italian consortium CAI, whose offer had been withdrawn but was revived last week.
The sudden reversal of fortunes for the money-losing carrier looks like a victory for Prime Minister Silvio Berlusconi, who returned to power in May vowing to rescue the airline.
Alitalia still needs a foreign partner to compete over the long-term and the deal could also face scrutiny from European Union regulators over whether it restricts competition and benefited from unfair government aid.
The airline's assets must also be valued and domestic rival Air One's assets acquired by CAI before Italy's flag carrier can be reborn.
Both Air France-KLM and Lufthansa have shown interest in a relaunched Alitalia as the airline sector consolidates amid crippling oil prices.
But the government of Berlusconi -- who opposed an earlier Air France-KLM offer under the previous center-left government on the grounds that Alitalia should remain Italian -- insists any foreign airline must only have a minority stake.
"It's up to CAI to decide what's the best offer for our country, but it must be a minority," Industry Minister Claudio Scajola said, hailing the "government's mediation to find a good contractual agreement."
International Herald Tribune
----------------------------------------------------------
Unions backing Alitalia rescue
Page last updated at 15:25 GMT, Monday, 29 September 2008 16:25 UK
A 1bn-euro (£800m; $1.45bn) bail-out of Italian airline Alitalia has won the support of the last two unions who had been opposing the deal.
The support for the rescue package could help clear the way for a relaunch of Italy's flag carrier.
The airline had appeared doomed to liquidation until the rescue emerged.
Last week, the Italian civil aviation authority, ENAC, agreed not to revoke Alitalia's licence to fly after a revised rescue plan was approved.
The SDL and AVIA unions, which represent cabin crew and ground staff had opposed the plan.
However, they have now followed the example of the airline's pilots and changed their minds.
International investment hope
The Italian consortium putting forward the rescue package, CAI, had withdrawn its offer earlier this month after it failed to gain the backing of all Alitalia's unions.
However, the deal was revived last week.
The consortium, led by chairman of the Piaggio scooter firm, Roberto Colaninno, has pledged to inject 1bn euros into the airline, strip away unprofitable parts of the business and then merge it with Italy's second-largest carrier, Air One.
They also hope that an international airline, such as Air France-KLM or Lufthansa will take a minority stake in the firm.
Prime Minister Silvio Berlusconi, who was re-elected in May, had vowed to rescue the airline.
Alitalia is estimated to be losing more than 2m euros every day
BBC News
------------------------------------------
Será que agora vai?
