September 19, 2008

Two Airlines Shun Alitalia’s Plight

Hopes of reviving the Italian airline Alitalia took another step back Friday as two airlines said they would not make offers for part of the company.

British Airways and Lufthansa both balked at making offers, the Italian ANSA news aency reported.

BA said it was not "even interested in taking a stake" in the rescue plan. Lufthansa said Alitalia's plight "does not concern us," ANSA reported Friday.

A business consortium called the Compagnia Aerea Italiana has been assembled to design a rescue plan for the floundering airline, but their plans have also met with resistance from unions, ANSA said.

CAI's plan included staff reductions and pay freezes. They were also pursuing a deal to turn nine separate union contracts into one.

The stalemate with unions and the lack of foreign intervention could spell the doom for Alitalia, which faces an imminent threat of a liquidation sale.