Alitalia is another airline hit by the credit crunch
Alitalia near to collapse
19 September 2008Alitalia looks likely to be the next airline to face closure after an investor group walked away from a rescue bid yesterday, it has been reported.
Unions blocked the takeover bid from the CAI consortium because it would have resulted in the loss of 3,000 jobs, which has meant that there is no way out for the stricken airline.
Following the withdrawal from CAI, Italian prime minister Silvio Berlusconi said: "We may be on the edge of the abyss."
Alitalia has now cancelled a number of flights from Rome''s Fiumicino airport, fuelling speculation that the airline will follow Zoom Airlines and the XL Leisure Group into liquidation.
Labour minister Maurizio Sacconi said: "There is no alternative to CAI. We need to return to the negotiating table because there is no-one else in the race."
As well as having negative implications for the tourism industry and passengers, the failure of Alitalia could spell disaster for the Italian government as it holds a 49.9 per cent stake in the airline.
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