Yet another rescue plan takes shape

Two weeks ago, Italian carrier Alitalia was on the verge of collapse, with reports that its fuel suppliers were about to turn off the tap on the cash-strapped, money losing company, and that the government was on the verge of pulling its operating certificate. A consortium pulled together by Italy’s prime minister had backed out of a takeover deal after the airline’s unions refused to give it the concessions required to operate profitably. But a week later, the company looked like it might get one more chance. The French press agency AFP said late last week that a new rescue plan for the airline was “poised for takeoff” after one of the largest unions, representing ground workers, reversed its earlier opposition to the deal. That brought the government-sponsored rescue consortium, called CAI, back to the table. There were also reports that another major European airline might take a stake in Alitalia. The mayor of Rome reportedly said that Air France/KLM is interested in a stake of up to 25 percent, and AFP reported that the chief executive of Lufthansa was in Rome meeting with union leaders. The rescue plan calls for Alitalia to combine operations with Italy’s other major airline, Air One. It would also mean the loss of more than 3,000 jobs at Alitalia.