Alitalia talks break down, CEO resigns.

[wunaladreamin]

Alitalia sale breaks down; CEO resigns**
*

Air France-KLM’s bid to takeover Italy’s national carrier Alitalia (Rome) fell apart on Wednesday after union negotiations broke down. Air France-KLM, long considered Alitalia’s best hope of reviving its fortunes, said conditions did not exist for further talks but that it continued to believe in the project. “The unions have made a grave mistake in breaking off the negotiations because the proposal was serious and concrete,” outgoing Prime Minister Romano Prodi said, adding unions should take responsibility for the failure. Italy’s economy minister, who is overseeing Alitalia’s sale, warned earlier that the only alternative to the deal was emergency administration (similar to United States Chapter 11 bankruptcy proceedings) in which an administrator decides whether the company can continue operations.
In a related story, Alitalia’s CEO Maurizio Prato resigned on the spot when it became clear negotiations had broken down.

Could this be the end of another cherished carrier?

[Matt Molnar]

Wow, and I thought American airline unions made some bad decisions. :)

[T-Bird76]

This is harsh but Alitalia should just be shuttered, close them down and start back up like Swiss. The unions are the single reason Alitalia is in the position its in.

[PhilDernerJr]

I think about Caribbean Airlines, how BWIA shut down and started up again, hiring the same people, just to lower their employment costs. It was a scumbag move.

However, with Alitalia, it seems as though the unions are the ones that will be forcing the close of the airline.

Is there anyone out there actually looking out for the employees? What, do we need a union to control the union?

[mirrodie]

Perhaps NYCA could make a bid for the airline?

[Nycfly75]

My family's holding company in Italy holds enough shares that we are consulted by the company on major moves. Was on a conference call this morning with my cousin, laywer, an AZ rep in Rome and a few other private shareholders and we pushed for that 48 hour window that is going to be happening now to restart things. Our shares are worth half what they used to be, so its about influence and prestige now and to position ourselves in case AZ needs an Italian solution. AF called the union's bluff and the union's are being cornered by every side right now. Should be an interesting 48 hours. If AZ does go bankrupt, operations will continue under the law created for the Parmalat bankruptcy a few years back and look for an Italian solution to emerge. Alitalia will never be liquidated.