For a second time in a decade, Alitalia will be managed by a
special administrator and will be sold off or liquidated.
Over the next six months, the company’s flight schedule will
continue as planned, while the government will provide a €600 million bridge
loan. The company is estimated to be losing €1 million a day. The government
appears determined not step in to nationalize the company.
Over the last decade, the company has cost the Italian
taxpayer €7bn. Opinion polls suggest most Italians favour a tough stand
vis-à-vis the company.
A plan put forward by the 49% minority shareholder, Etihad,
has been rejected by the unions. The plan envisaged slashing approximately 20%
of the company’s 12,500 employees and slashing pay. In return, the Abu Dhabi
shareholder would invest €2bn. Etihad is not committed to the investment
without restructuring.
When trade unions rejected the offer, Etihad took its money
off the table. Etihad now has a strong negotiating position since there is no
alternative bid; it is the Abu Dabi national carrier or liquidation.
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