The intial deadline for agreement between the Unions ansd those mounting a rescue plan was set for Thursday (11 September 2008) - This as I expected passed, because I thought the Unions would play the brinkmanship card until the after the deadline . But hope still appeared to linger as talks conntiued into Friday.
But finally Roberto Colaninno's CAI investor group ran out of patience abandoned talks to buy the state-owned carrier because of union opposition.
So where does this leave Alitalia?
The simple answer should be immediate cessation of operations. But that is of course commercial common sense, not something that can ever be assumed when a company is owned by the Italian Government and de facto controlled by nine Italian Unions.
The labour Minister was quoted as saying: "The situation is worrisome and getting worse" and followed this with "Alitalia won't be able to operate much longer if there aren't new developments". Well there is an understatement to say the least.
If this was a daytime Soap Opera, even the most hardened Soap Addict would consider the plot too surreal.
The Government Appointed Administrator it appears will not start firing staff immediately, which was previously his implied position if talks failed. But Alitalia will run out of funds at the end of the month and then at least in theory there is no choice company will be liquidated
But it is obvious the Unions in a total suspension of any understanding of reality still believe that a better deal will magically appear, Well this is Italy and suppose there might be divine intervention, but if there is it won't be based on any commercial logic.
Other Posts on Alitalia in this blog:
13th January 2009:
Alitalia Reborn - But will it Survive?
06th October 2008:
Alitalia - Is the Opera entering its final act?
29th August 2008:
Alitalia Files for Bankruptcy Protection
29th July 2008:
Alitalia - How long before the life support is switched off?
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