Investor group CAI walked away from an Alitalia rescue plan citing a lack of labor union support for the proposal. Most of the dissent stems from job cuts, but market conditions and the company?s distressed financial situation make further concessions to Alitalia?s nine unions very unlikely. The deadline for accepting the plan, which proposed 3,000 job cuts and longer hours without extra pay, was 4pm today. Five unions opposed the proposal, fruitlessly hoping to renegotiate. After three unsuccessful efforts to sell the airline, a complete collapse and liquidation seems probable.
See "Alitalia moves closer to liquidation after investor drops offer", International Herald Tribune, September 17, 2008