Berlusconi's flagship policy of retaining Alitialia as a national airline is in peril as the airline loses $2 million per day. The government and trade unions remain resistant to shareholder agreements, but can this deadlock continue?
Troubled Alitalia could see its licence suspended within three or four days, according to the country's civil aviation chief. Unless a fast money plan rescues this crippled airline, its planes will be grounded.
Alitalia personnel celebrated the decision by a consortium to drop a rescue plan for the stricken flag-carrier, a blow to Prime Minister Silvio Berlusconi. Italy said it would ground Alitalia in 10 days maximum if there is no new proposal.
The Italian Air Company (CAI), a consortium that proposed to take over Italy's flagship carrier Alitalia, has withdrawn its bid for the stricken airline, thereby pushing the company further down the road to bankruptcy.
Unions at ailing airline Alitalia have been given less than 24 hours to accept a rescue offer or watch the company go bankrupt. A consortium will meet at 4 pm on Thursday (GMT + 2) to decide whether to save the Italian airline.