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Alitalia crisis talks to resume Alitalia crisis meetings restart
(about 4 hours later)
Emergency talks to prevent the collapse of Alitalia are due to resume in Rome after the airline warned it may have to start cancelling flights from Monday. Emergency talks to prevent the collapse of Alitalia have restarted in Rome after the airline warned it may have to start cancelling flights from Monday.
With the airline saying it is running out of money to buy aviation fuel, the government needs to persuade unions to back a deal that involves job cuts.With the airline saying it is running out of money to buy aviation fuel, the government needs to persuade unions to back a deal that involves job cuts.
The only offer on the table is from Italian consortium CAI, which only wants Alitalia's profitable operations.The only offer on the table is from Italian consortium CAI, which only wants Alitalia's profitable operations.
Unions have so far rejected this deal as it would mean major job losses.Unions have so far rejected this deal as it would mean major job losses.
Yet with the only alternative now increasingly looking like Alitalia's total collapse and the loss of all 20,000 jobs, the Italian government is hoping that the unions will back down. Yet with the only alternative now increasingly looking like Alitalia's total collapse and the loss of all 20,000 jobs, the unions now appear more willing to back down.
'More flexible' 'Cautiously optimistic'
"We all need to have a bit more flexibility and find a balancing point, everyone giving something up," Raffaele Bonanni, head of the CISL union, told Italy's Il Giornale newspaper. "We are trying to get a solution to this saga and there are still many obstacles, but the climate is different and there is the awareness that there is no alternative to the deal," said Giuseppe Caronia, head of the UILT union.
"I am moderately and cautiously optimistic."
Prime Minister Silvio Berlusconi has pledged to do all he can to save Alitalia.Prime Minister Silvio Berlusconi has pledged to do all he can to save Alitalia.
Securing the airline's future was one of his main election pledges before he returned to power in May.Securing the airline's future was one of his main election pledges before he returned to power in May.
Failed French takeover
Back in April, plans for Alitalia to be bought by Air France-KLM collapsed due to union opposition to planned job cuts.Back in April, plans for Alitalia to be bought by Air France-KLM collapsed due to union opposition to planned job cuts.
Italy's civil aviation authority said on Saturday that Alitalia's operating licence was at risk due to the airline's admission that it was running out of funds to buy fuel.Italy's civil aviation authority said on Saturday that Alitalia's operating licence was at risk due to the airline's admission that it was running out of funds to buy fuel.
Alitalia is currently being run by administrators after seeking bankruptcy protection on 29 August.
The Italian government owns a 49.9% stake in Alitalia, but it cannot simply pump public funds into the airline as there are strict European Union rules preventing state support for airlines.