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Alitalia in crisis after rescue plan rejected

Wednesday, April 26, 2017 - 01:37

Alitalia is preparing for special administration proceedings after workers rejected its latest rescue plan. As Sara Hemrajani reports, this makes it impossible for the loss-making Italian airline to secure funds to keep its aircraft flying.

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It's been repeatedly bailed out by Italy's government and private investors, but Alitalia is still heading for a crash. The latest crisis follows numerous disputes with its 12,500 staff and the rejection of a new rescue plan by workers. (SOUNDBITE) (Italian) ALITALIA UNION REPRESENTATIVE, ANTONIO PIRAS, SAYING: ''The industrial plan was presented by those who are responsible for the company's collapse. We've always said if there had to be lay-offs, the managers should go first. Instead they demanded sacrifices just from the workers and included only minor investments." Etihad Airways bought a 49 percent share of Alitalia in 2014, but it still struggled. Italy's flagship airline has only made an annual profit a few times in its 70 year history. It's now thought to be losing more than half a million euros a day and preparing for what's called "special administration." (SOUNDBITE) (English) REUTERS CORRESPONDENT, CRISPIAN BALMER, SAYING: "An administrator will be appointed by the government to look at the company and see whether a buyer can be found for it, to see whether a new industrial plan can be found and, if not, the company will have to be liquidated, will have to be shut down.'' Normal services are being operated. But Italy's government says there'll be no more bailouts. A shareholder meeting planned for Thursday has reportedly been put back to next week. It's also thought no new offers to buy the airline have been received.

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Alitalia in crisis after rescue plan rejected

Wednesday, April 26, 2017 - 01:37