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Alitalia airline cancels flights | Alitalia airline cancels flights |
(about 3 hours later) | |
Alitalia has cancelled a number of flights from Rome's Fiumicino airport, increasing fears that the carrier may soon go into liquidation. | Alitalia has cancelled a number of flights from Rome's Fiumicino airport, increasing fears that the carrier may soon go into liquidation. |
The airline confirmed that a number of flights have been cancelled, but denied it had run out of aviation fuel. | The airline confirmed that a number of flights have been cancelled, but denied it had run out of aviation fuel. |
On Thursday, a consortium withdrew a rescue offer for Alitalia due to opposition from trade unions. | On Thursday, a consortium withdrew a rescue offer for Alitalia due to opposition from trade unions. |
Alitalia, which filed for bankruptcy protection last month, has warned it is low on cash to buy more fuel. | Alitalia, which filed for bankruptcy protection last month, has warned it is low on cash to buy more fuel. |
We need to return to the negotiating table because there is no-one else in the race Labour Minister Maurizio Sacconi | |
Reports say between 20 and 30 Alitalia flights have been cancelled. | Reports say between 20 and 30 Alitalia flights have been cancelled. |
Alitalia told the AFP news agency that the move was caused by "technical reasons". | Alitalia told the AFP news agency that the move was caused by "technical reasons". |
'No alternative' | 'No alternative' |
The CAI consortium's takeover offer was backed by three of Alitalia's nine unions, but six opposed the plans, due to plans to cut 3,000 jobs. | The CAI consortium's takeover offer was backed by three of Alitalia's nine unions, but six opposed the plans, due to plans to cut 3,000 jobs. |
The Italian government insists that the CAI deal is the only way for Alitalia to avoid liquidation. | The Italian government insists that the CAI deal is the only way for Alitalia to avoid liquidation. |
"There is no alternative to CAI," said Labour Minister Maurizio Sacconi. | "There is no alternative to CAI," said Labour Minister Maurizio Sacconi. |
"We need to return to the negotiating table because there is no-one else in the race." | "We need to return to the negotiating table because there is no-one else in the race." |
There is little the government can now do, as state aid for airlines is illegal under European Union rules. | There is little the government can now do, as state aid for airlines is illegal under European Union rules. |
There were also reports on Friday that Italy's civil aviation authority may ground all Alitalia planes within 10 days from Monday unless the airline can show a new rescue plan. | There were also reports on Friday that Italy's civil aviation authority may ground all Alitalia planes within 10 days from Monday unless the airline can show a new rescue plan. |
Government stake | Government stake |
Under the CAI rescue proposal, the Italian consortium had put forward a 1bn euro ($1.4bn; £790m) offer for the airline. | Under the CAI rescue proposal, the Italian consortium had put forward a 1bn euro ($1.4bn; £790m) offer for the airline. |
It wanted Alitalia to merge with Air One, the country's second-largest airline, while its 1.2bn euro debt would be absorbed by a second firm, which would then be liquidated. | It wanted Alitalia to merge with Air One, the country's second-largest airline, while its 1.2bn euro debt would be absorbed by a second firm, which would then be liquidated. |
Prime Minister Silvio Berlusconi has pledged to do all he can to save Alitalia, in which the Italian government holds a 49.9% stake. | Prime Minister Silvio Berlusconi has pledged to do all he can to save Alitalia, in which the Italian government holds a 49.9% stake. |
In April, plans for the airline to be taken over by Air France-KLM collapsed when unions refused to accept the terms of the deal. | In April, plans for the airline to be taken over by Air France-KLM collapsed when unions refused to accept the terms of the deal. |
Alitalia shares were suspended in June and the airline is being run by a special administrator following its move into bankruptcy protection last month. | Alitalia shares were suspended in June and the airline is being run by a special administrator following its move into bankruptcy protection last month. |