Alitalia Pilots, Cabin Crew To Strike

Five unions representing Alitalia's pilots and flight assistants said they would strike for one day on November 25 in protest at a takeover of the ailing airline by an Italian investor group.

They also asked for an urgent meeting with the CAI group of businessmen who have made the bid.

The unions have rejected new contracts offered by CAI, refusing to join other key employee groups that have backed the takeover deal.

CAI has decided to press ahead with its bid anyway, offering to pay EUR375 million euros for the bankrupt carrier's assets and take on debt worth EUR675 million.

The consortium of Italian businessmen was the only group bidding in Alitalia's third attempt at a sale and made a binding offer for the assets last week.

The five unions which have rejected the offer complain that the new job contracts discriminate against mothers with small children or employees with handicapped family members. CAI denies the accusations and has said it will approach pilots and flight staff directly to offer them a job.

The takeover offer is subject to approval by Alitalia's bankruptcy commissioner, who hopes to wrap up the sale by mid-November, since the airline's cash reserves are expected to last only a few more weeks.

Once the deal with CAI is sealed, the next step will be to bring in a foreign airline to help run Alitalia together with the fleet of domestic rival Air One.

Air France-KLM and Lufthansa are in contention for an initial stake of up to 20 percent in the controlling group.

The deal is still contingent on winning approval from European regulators. CAI is particularly anxious to be left immune from any EU counter-measures against Italy over a state bridging loan for Alitalia that was later written off.

(Reuters)