Alitalia unable to pay April salaries

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The Italian airline’s troubles seem to be able to see no respite, with the company warning that it will not be able to pay its monthly wages to its workers today.

The company’s administrators, who are currently seeking to get Brussels permission for a new state cash injection, informed the workers that “as usual we will proceed with the payment of April salaries as soon as we are paid the expected compensation in support of the Covid-19 emergency”.

To save the salaries of Alitalia employees, the government has intervened in recent days by allocating 50 million with the decree against the pandemic.

Unions urged the government on Tuesday to abandon negotiations with Brussels over a proposed business overhaul for the airline, saying the European Commission was favouring foreign carriers over the group.

Rome has been in negotiation with the European Union’s executive arm for months over the plan to restructure the firm through the launch of a new, state-owned company called ITA.

ITA, which will receive 3 billion euros ($3.59 billion) from the state, was supposed to buy assets of Alitalia and hire some of its 11,000 workers to reduce job cuts at the old carrier to the minimum.

However divergences with Brussels over the conditions under which Rome could inject money into ITA have delayed the asset sale and left Alitalia’s coffers almost empty.

via Ansa, Reuters

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