Alitalia plunged into chaos as workers reject rescue deal

Alitalia, Italy’s flag carrier, has been plunged into chaos after its workers rebelled against a deal struck 10 days ago by management and trade unions to save the airline from collapse by cutting wages and laying off employees. The vote against the agreement jeopardises a round of financing that had been planned to keep Alitalia solvent, meaning the airline faces possible receivership, liquidation and its fleet being grounded.  Paolo Gentiloni, prime minister, called ministers to Palazzo Chigi, the government seat in Rome, on Monday night for emergency talks on the fate of the carrier, which has been a staple of civil aviation in Europe since its first flight in 1947. In recent days, senior Italian officials have repeatedly discounted bailing out Alitalia with taxpayer money, leaving it with no options for survival unless there is a change of heart. Alitalia was thought to have found its saviour after Etihad of the United Arab Emirates made a big investment in it nearly three years ago, taking a 49% stake. But its attempts to return quickly to profitability were hit by growing competition from low-cost carriers as well as the impact of terrorism on European travel.  Alitalia tried to get back on course earlier this year with a plan to cut E1b in costs over the next three years, with up to 2,000 lay-offs and salary cuts of up to 30%. In a deal reached with the trade unions on April 14 that was supposed to pave the way for a new round of financing, the redundancies were reduced and the wage cuts were slashed to 8%. But the staff still rejected the solution in Monday’s vote, putting an end to hopes that this could provide a way out. <br/>