UPDATE 1-Italy econ minister urges Alitalia unions to act
April 5th, 2008 | by admin |(Adds more comments, background)
BRDO, Slovenia, April 5 (Reuters) Italy’s Economy MinisterTommaso Padoa-Schioppa on Saturday called on Alitalia (AZPIa.MI: Quote, Profile, Research)unions to act before the stalemate in talks with Air France-KLM(AIRF.PA: Quote, Profile, Research) would cause irreversible damage.
“My appeal is to do something new today, or tomorrow at thelatest,” Padoa-Schioppa told a news conference after a meetingof the European Union finance ministers.
“I feel that there is a greater awareness now of the gravesituation and limited time, but this awareness in not yetsufficient,” Padoa-Schioppa said, adding he feared irreversiblenegative consequences for ALitalia.
Loss-making Alitalia is due to decide on April 8 whether toask for protection from creditors with the government scramblingto keep it flying despite a looming cash crisis.
Alitalia has said it remains in favour of a takeover plan byAir France-KLM. The French carrier has decided to back out oftalks on Wednesday, saying the demands of Alitalia’s unions areunacceptable.
State-controlled Alitalia, whose fate has become a topcampaign issue ahead of Italy’s general election in 10 daystime, has said its cash will run out soon unless a new ownersteps in to pump more money into its coffers. (Reporting by Alessia Pe)
