Alitalia faces bankruptcy after vote

Workers vote to reject cost-slashing rescue plan
Employees at Italy’s loss-making flag carrier Alitalia have rejected a restructuring plan to slash jobs and salaries, putting all their bets on the government coming to the rescue.
Alitalia, 49%-owned by Etihad Airways, has been bailed out repeatedly by governments in Rome and by private investors over the years, but it is clear there are limits.
The plan had involved cutting 1,700 ground-staff jobs and cutting 8% off flight personnel salaries. But “the workers’ anger won out,” said the leader of one of the unions involved.
Alitalia has achieved an annual profit only a few times in its 70-year history, Reuters reports, and is bleeding cash at a rate of at least €500,000 a day. Sources warn it will run out of cash in the coming weeks.


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