Alitalia to unveil rescue plan

06 Sep, 2004

The management of troubled Italian carrier Alitalia is due on Monday to unveil a rescue plan to stave off bankruptcy, which the Italian media says will include 5,100 job cuts.
Alitalia boss Giancarlo Cimoli has until September 15 to reach an agreement with the airline's unions on a rescue plan for 2005-08, a precondition for obtaining an essential bridging loan of 400 million euros (482 million dollars).
Alitalia says it could go bankrupt within a month if it does not receive the loan, which it needs to relieve its critical cash shortage.
Labour Minister Roberto Maroni warned on Sunday that a union-management deal was vital. "Either there's an agreement between the company and the unions, a precondition for the bridging loan, or Alitalia's fate is sealed," he told Ansa news agency.

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