Italian airline cancels 40 flights

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Spike
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Italian airline cancels 40 flights

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[glow=black]Italian airline Alitalia has cancelled 40 flights as the future of the carrier hangs in the balance.[/glow]

The airline was forced to cancel the flights because of a strike by a small union protesting a rescue plan.
Italy's four main unions - CGIL, CISL, UIL and UGL - and a consortium offering to buy Alitalia have agreed to the rough outline of a rescue plan.
The proposal would cut about 3,000 jobs but leave 12,500 workers at the slimmed-down airline.
However, unions have so far failed to agree on the specifics of the deal, leaving the airline's future in jeopardy.

[glow=black]Let no-one be in any doubt.
This industry is in crisis - a deeper, more protracted,
more fundamental crisis than 9/11,
the Gulf War or any of the previous shocks
that have beset the industry since the age
of mass air transport began in the 1970s.
[/glow]

BA chief executive Willie Walsh addresses the London Chamber of Commerce

The Italian government has summoned unions for what could be the last round of talks to save it from going out of business.

Labour Minister Maurizio Sacconi has called unions to meet the head of the investor group, known as CAI, at the prime minister's office.
Mr Sacconi said: "This is the last slot for Alitalia's takeoff."

Alitalia is not the only airline facing difficulties as the industry has struggled to cope with soaring fuel costs. Last week British tour operator XL ceased trading and in Greece, ailing state carrier Olympic Airlines is to be shut down and relaunched under a new structure.

The state-controlled airline is losing more than £1.6m a day and has more than £800m of debt.
Alitalia, which is operating under a bankruptcy commissioner, has not been in profit since 1999.


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