26 Sep 2008

Temporary reprieve for Italian airline

10:49 am on 26 September 2008

Alitalia has been given a temporary reprieve by the Italian civil aviation authority. The airline is struggling to survive.

ENAC said it would not revoke Alitalia's licence to fly "for now" after Italy's biggest union agreed to a revised rescue plan.

The authority had threatened to ground Alitalia's planes unless it presented an agreed plan by the end of Thursday.

However, unions representing pilots and crew are yet to agree to the deal, however.

The CGIL union said it had signed an agreement with Alitalia, after winning concessions on pay, leave, contracts and temporary jobs.

Four of the nine unions have now agreed to the terms of a rescue deal proposed by investors group CAI. CGIL has urged the remaining five to end their opposition.

A government-appointed administrator Augusto Fantozzi said ticket sales fell by 100,000 in September, due to uncertainty surrounding the airline.