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Italy gives Alitalia unions one week deadline

Thu Sep 4, 2008 10:05am EDT

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ROME, Sept 4 (Reuters) - Alitalia's bankruptcy commissioner gave the carrier's powerful unions a one-week deadline to get on board with its latest rescue plan, as the two sides met for another round of talks to win labour backing for the deal.

Alitalia's AZPIa.MI nine unions -- which scuppered a sale of the carrier to Air France-KLM earlier this year -- are up in arms over plans to cut about 7000 jobs, or about 40 percent of its workforce, under the Italian investor-led rescue of the airline.

Augusto Fantozzi, the administrator overseeing Alitalia's bankruptcy process, told the unions the two sides must reach a deal by next Thursday, a union official at the meeting said.

The head of the Italian consortium, Piaggio CEO (PIA.MI) Roberto Colaninno, and the man expected to become Alitalia's next CEO, Rocco Sabelli, were among those attending the meeting with unions on Thursday.

The two led a group of 16 Italian investors who plan to buy Alitalia's best assets in a bid to relaunch the carrier as a smaller airline focusing on short- and medium-haul routes.

The governor of the Lazio province, where Rome is located, on Thursday offered to join the consortium by putting in 10 million euros in an effort to preserve the region's interests in any future decision on Alitalia's fate.

Piero Marazzo, the governor, told reporters that Colaninno considered the proposal "interesting" and agreed to further meetings to discuss the investment. (Reporting by Alberto Sisto; editing by Elaine Hardcastle)



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