Troubled Alitalia agrees pounds 1.3bn rescue
Thursday 20 June 1996
The deal was immediately attacked by British Airways, whose spokeswoman said: ``Our position is well documented. We remain opposed to state aid but the Alitalia deal is not yet signed and sealed.''
Under the deal hammered out with the unions, at least 20 per cent of the group's shares would be reserved for staff after its recapitalisation, while three seats on the board would be set aside for share-holding employees and one for a union representative.
The company said the number of shares assigned to each group of employees under the deal would be determined by their "contribution, in terms of reduction of labour costs".
Agreement with the unions had been seen as vital as two previous rescue plans in as many years have sunk without trace after running into opposition from workers.
The latest rescue plan was announced last month by Alitalia's new managing director, Domenico Cempella, and envisages staff cuts, reduced overheads, and a pounds 1.3bn capital increase. Its majority shareholder, the state holding company IRI, will pump half that cash into the airline, with the rest coming from financial markets.
This month IRI said it had put on hold a decision to inject funds until unions agree to the plan. Alitalia has remained confident its shareholders would approve its capital increase. Alitalia has said restructuring would involve dividing the airline in two, with one unit focusing on long-haul flights and the other medium- and short-haul operations.
- 1 Three-year-old ultra-Orthodox Jewish children told 'the non-Jews' are 'evil' in worksheet produced by London school
- 2 Moscow voted the world's unfriendliest city
- 3 The excuses your boss is most likely to believe when you call in sick
- 4 I'm pansexual – here are the five biggest misconceptions about my sexuality
- 5 More than 11,000 Icelanders offer to house Syrian refugees to help European crisis
The one chart that shows how George Osborne is almost certainly going to be our next Prime Minister
The excuses your boss is most likely to believe when you call in sick
Bono's group has made more money from Facebook investment than from all his music
Three-year-old ultra-Orthodox Jewish children told 'the non-Jews' are 'evil' in worksheet produced by London school
Wikipedia rocked by 'rogue editors' blackmail scam targeting small businesses and celebrities
Climate change: 2015 will be the hottest year on record 'by a mile', experts say
Jeremy Corbyn calls Osama bin Laden's killing a 'tragedy' - but was it taken out of context?
If these extraordinarily powerful images of a dead Syrian child washed up on a beach don’t change Europe’s attitude to refugees, what will?
Tony Blair attacks Jeremy Corbyn's 'Alice In Wonderland' politics
Theresa May says migrants should be banned from entering the UK unless they have jobs lined up
If you're not already angry about the refugee crisis, here's a history lesson to remind you why you really should be
iJobs Money & Business
£14000 - £16000 per annum: Recruitment Genius: This company was established in...
£20000 - £25000 per annum + OTE 40k: SThree: SThree are a global FTSE 250 busi...
£20000 - £25000 per annum + competitive: SThree: SThree are a global FTSE 250 ...
Voluntary and unpaid, reasonable expenses reimbursable: Reach Volunteering: St...