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Alitalia on course for administration
[ April 26, 2017 // Chris ]Not for the first time, the future of Italian flag carrier Alitalia hangs in the balance, after trade unions voted against a potential rescue deal on 24 April.
Despite an agreement signed in 2014, in which Abu Dhabi’s Etihad took a 49% stake in the auirline, Alitalia has faced continued pressure from low-cost airlines and a fall-off in traffic following the recent terrorist attacks in Europe. At the same time, it has failed to bring its cost structure in line with Europe’s leaner airlines.
With trade unions refusing to acceot a deal that would have reduced salaries and jobs in return for a private cash injection, Alitalia’s board said that recapitalisation was now impossible and are due to hold a shareholder meeting on 27 April which could lead to the carrier going into administration.