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Alitalia Gets Reprieve as Pilots Back Takeover Deal
Unions support gov't-backed plan to dodge collapse
By Matt Cantor
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Posted Sep 27, 08 10:43 AM CDT
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(Newser)
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Alitalia, the bankrupt Italian air carrier on the brink of collapse, got a reprieve today when its pilots agreed to a government-backed takeover bid by a team of business executives, Bloomberg reports. Pilots’ unions joined ground staff in approving the plan, which calls for 3,000 job cuts and longer hours for the same pay. Flight attendants’ unions are still in talks with the CAI business group.
“The agreement with pilots allows us to look at coming days with great serenity,” said Italy’s transport minister. “Now we can let planes take off.” Airline officials had said the company would run out of cash within a month. CAI execs hope to merge Alitalia with rival Air One, leaving a single company controlling more than half Italy’s market and turning a profit in 2 years.