Alitalia prepares for special administration after rescue plan rejected

Alitalia is preparing for special administration proceedings after workers rejected its latest rescue plan, making it impossible for the loss-making Italian airline to secure funds to keep its aircraft flying. Workers on Monday rejected a plan to cut jobs and salaries, betting the government will be asked to call in an administrator to draft an alternative rescue plan. Alitalia has been bailed out by Italy and private investors repeatedly over the years but Italy's industry minister on Tuesday ruled out nationalisation and public funds for the carrier. The airline, 49%-owned by Abu Dhabi's Etihad Airways, has made a profit only a few times in its 70-year history and, with around 12,500 employees, is losing at least E500,000 a day. The airline said after a board meeting it would "start preparing the procedures provided by law" and a person close to the company said the board would seek shareholder approval to request the appointment of a special administrator. "It is not an option but a must," the person said, adding, "The board ... can only do what it has to do." The administrator would assess whether Alitalia can be overhauled or should be wound up, before preparing industrial and financial plans for a rapid revamp, either as a standalone company or through a partial or total sale. If all else fails, it could trigger liquidation. Alitalia's flight operations remain unchanged for now, the company said in a statement.<br/>