Alitalia workers reject rescue plan

Rome likely to appoint an administrator to draft alternative plan to ensure loss-making airline doesn’t go under

Workers in loss-making Italian airline Alitalia rejected a management restructuring plan to cut jobs and salaries on Monday, betting that the government will be asked to call in an administrator to draft an alternative rescue plan.

The flag carrier, owned 49 per cent by Abu Dhabibased Etihad Airways, has been bailed out repeatedly by Italian governments and private investors over the years, though Rome says it will not re-nationalise Alitalia and creditors are losing patience.

“The workers’ anger won out,” said Antonio Piras, general secretary of the Fit-Cisl union, explaining why twothirds of workers had rejected a plan that had been agreed with unions in order to unlock additional financing and keep Alitalia in the air.

It has made an annual profit only a few times in its 70year history, is losing at least €500,000 ($543,000; Dh2 million) a day and is set to run out of cash in coming weeks, sources say. Sources say the company will use that meeting to consider whether to enter special administration, under which Rome would be asked to appoint a commissioner to assess whether it can be overhauled or should be wound up.

James Hogan, president and chief executive of the Etihad Aviation Group, and vicechairman of Alitalia, said: “We deeply regret the Alitalia staff vote outcome, which means that all parties will lose: Alitalia’s employees, its customers and its shareholders, and ultimately also Italy, for which Alitalia is an ambassador all over the world.”

With the firm under protection from creditors, the commissioner would seek to prepare industrial and financial plans for a rapid revamp of Alitalia, either as a standalone company or through a partial or total sale, or else put it on course for assassination.

Workers had repeatedly said they were unwilling to accept any further sacrifices when Alitalia’s labour costs were already among the lowest among the legacy airlines in Europe.