Alitalia Facing Bankruptcy
Alitalia facing bankruptcy after employees reject the rescue bid.
Since the vote, Alitalia's board has said that they have "taken note, with regret" over the rejection from the employees against the cost-cutting plan which was projected - with the aim of bringing in investment for the company of over 900 million euros in new financing.
"All parties will lose, Alitalia's employees, it's customers and it's shareholders and ultimately - Italy, for which Alitalia is an ambassador all over the world" said James Hogan who is the airline's vice chairman and president and also CEO of Etihad Aviation Group - Alitalia's biggest minority shareholder.
James Hogan continued to say that Etihad had poured in "vast amounts of financial and commercial support during the past three years with a strong commitment and principle willingness to support the airline, with a package worth nearly 2 billion europe to help fund Alitalia's five-year business plan."
That commitment is something that hinged over what the employees would do - they needed to approve the cost-cutting plan for the investment which has not gone the way the company expected.
Employees are now calling for an alternative rescue plan and Alitalia's board will be holding a meeting on Tuesday.
Sources say that the company will be using this meeting as a way to consider what action to take - entering a special administration, bringing in the Government who would be asked to appoint a commissioner to look over the situation.
Employees rejected the bid and have repeatedly said that they are unwilling to accept further cuts as Alitalia is already amongst the lowest paying airlines in Europe.
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