Sunday, September 14, 2008

Italy scrambles to save bankrupt airline Alitalia

ROME -The Italian government is holding emergency talks with unions and investors over a plan to save Alitalia as the bankrupt airline risks having to ground flights for lack of fuel.

The rescue plan would have investors buying profitable assets and investing $1.4 billion amid wage cuts and layoffs that are opposed by the unions.

The government is mediating emergency talks that started Saturday and resumed Sunday morning.

Talks broke down on Friday when the investors walked out after failing to win the unions' crucial support. The investors' offer remains on the table, and officials are trying to break the deadlock.

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