Milan flights grounded as Alitalia workers strike

2007-10-24

Striking Alitalia workers forced more than 250 flights at Milan's airports to be cancelled on Monday in a protest at the struggling carrier's cutback plans.

Strikers blocked access to the main international airport, Malpensa, as part of the four-hour stoppage. The strike was the latest in a string of labour actions to hit Italy's national airline.

At least 197 takeoffs and arrivals were cancelled at Malpensa, and another 57 at the smaller Linate airport.

The stoppage coincides with a visit to Italy by officials of the International Exhibitions Bureau. They are evaluating Milan's candidacy to host an international expo in 2015.

Alitalia said in August it would cut its presence in Milan, the hub of Italy's industrial north, as part of a survival plan as it looks for a buyer.

Another 25 flights were cancelled at Rome's Fiumicino and Ciampino airports because air traffic controllers struck for four hours over a contract dispute.

A strike by Rome service crews also grounded or delayed some flights of low-cost carriers.

Meanwhile, Russian flag carrier Aeroflot is prepared to borrow up to US$1.4 billion to finance a possible bid for Alitalia.

Financial director Mikhail Poluboyarinov said Aeroflot would decide within the next one to two weeks whether to accept a renewed invitation to bid for a stake in Alitalia.

Alitalia this month short-listed six potential bidders in a second attempt to sell the Italian government's 49.9 percent stake in the company. Aeroflot pulled out of the first auction organised by the government, having expressed concern over the asking price and Alitalia's finances.

Poluboyarinov said the company understands that the purchase procedure will be less formalised and will happen as a result of discussions with companies on the shortlist.

Other companies on the shortlist include European rivals Air France-KLM and Lufthansa, smaller Italian airline Air One and US private equity firm TPG.

The sixth potential bidder is a consortium advised by legal expert Antonio Baldassarre. Alitalia has said it would start talks with the consortium only after it proved it had the required financial means.

Alitalia has a market capitalisation of $1.7 billion.
Source: cargonewsasia
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