Investor group CAI withdraws Alitalia offer: Reports

18 September 2008

Milan: The Italian investor group, Compagnia Aerea Italiana (CAI) is learnt to have withdrawn its offer for the national flag carrier, Alitalia SpA, as reported by the Dow Jones Newswires.

The offer was withdrawn, reportedly because of the failure to win union support from all nine labor unions for the government- backed rescue plan, according to the news agency Radiocor. 

CAI led by Piaggio & C. SpA chairman Roberto Colaninno, withdrew its bid to buy assets from the Rome-based Alitalia. This leaves Alitalia, currently under bankruptcy protection, without a buyer.

Additionally, the fallout of the deal could be that chaos for people trying to travel by air into and out of Italy.

Government-appointed bankruptcy commissioner Augusto Fanztozzi will now have to decide on how to shut down the airline.  Alitalia administrator Fantozzi had said yesterday that "there is little money" to keep the airline in operation. "It's about to run out," he said.

A week ago, Fantozzi had warned union representatives that he would not hesitate to terminate labour contracts and shut down Alitalia if talks fail. Fantozzi's message was echoed by Italian welfare minister Maurizio Sacconi, when he had expressed hope of reaching an agreement, saying that ''everyone is well aware that the only alternative is the failure of the company with all the consequences for the workers and the country in general."