Alitalia unions mull proposal, weigh concessions

Alitalia's formidable labour unions, which effectively scuttled a deal earlier in the year aimed at resurrecting the airline through a stake sale to Air France – KLM, are currently negotiating a restructuring plan with the Italian government that may involve layoffs and new working conditions for its members.

Negotiations are continuing with Alitalia's government appointed administrator, former law professor and former minister Augusto Fantozzi, along with representatives of the Italian investor group CAI which includes airline Air One.

Italian bank Intesa Sanpaolo's plan for Alitalia calls for investors to buy Alitalia's viable assets, and subsequently merge with Air One.

Air One chairman Carlo Toto says he is "certain" that a relaunch of Alitalia is feasible, and that he has been working on it for two years. He said that the relaunch would only be possible by integrating Alitalia with Air One, and that he is ''more than willing'' to do his part to aid in its development. 

Earlier this week, Fantozzi warned union representatives that he would not hesitate to terminate labour contracts and shut down Alitalia if talks fail. 

Fantozzi's message was echoed by Italian welfare minister Maurizio Sacconi, when he expressed hope in reaching an agreement, saying that ''everyone is well aware that the only alternative is the failure of the company with all the consequences for the workers and the country in general."

The Italian Pilots Association issued a separate statement which warns of a ''direct impact on aviation safety'' if a single contract were to be signed for all Alitalia employees, including pilots, cabin crew and ground staff.