Italian PM gives carrier Alitalia three months to avoid bankruptcy

Italian Prime Minister Romano Prodi Tuesday told unions that the Italian national carrier Alitalia could go bust in three months' time.

"Alitalia is going through the worst moment in its history. The situation is totally out of control and I do not see any parachutes," the premier told representatives from the CGIL. CISL and UIL unions.

"We have until January to hammer out a solution which can avoid bankruptcy," Prodi added.

"Alitalia has lost its share of the market both at home and abroad and this is a problem which involves the whole country. It is useless to talk about restructurization or recapitalization when no national or international strategy exists," Prodi said.

"Alitalia's decline must be stopped with new proposals which I will try to help hammer out, also through a new relationship with you," the premier explained to the unions.

"We must move quickly. We can only succeed if we work together. If we fail we will be relegated to the sidelines of the European air transport sector," Prodi said.

According to local media reports, the premier said Alitalia must be placed at the center of air transport policy, the way national carriers are in other countries.

Also attending Tuesday's meeting was Transport Minister Alessandro Bianchi who told the unions that Alitalia's goal must be "to become a strong domestic carrier in order to strike strong (international) alliances. Alliances are positive only if they are partnerships between equals."

Unions appeared to have understood Prodi's blunt message and Fabrizio Solari, head of the CGIL's air transport union FILT, told the press that "we need to act fast if we want to still be aloft in three months' time".

Source: Xinhua