Alitalia could be grounded in 10 days

Italy's civil aviation authority ENAC will ground Alitalia (AZPIa.MI) flights in 7-10 days from next Monday if the special administrator does not present a new rescue plan to them that day, a source at ENAC said today.

"From Monday if there is no news proceedures will be started and within a week, 10 days at most, if there is no positive outcome Alitalia flights will be stopped," said the source.

The airline's special administrator, Augusto Fantozzi, is due to meet the aviation body on Monday after Italian consortium CAI withdrew its offer to buy part of the airline yesterday, in the face of union opposition to job losses.

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