Alitalia presses unions to back Etihad deal

Up to 250 million euros to be raised to help struggling airline

(ANSA) - Rome, July 25 - It is "essential" that all of its unions agree to the labour conditions required for Etihad's investment in Alitalia, the Italian airline said Friday. "The cohesion and sharing of decisions by all the unions is essential to the successful of completion of arrangements with Etihad," Alitalia said. Its statement came the same day that shareholders in the troubled carrier approved a capital increase of up to 250-million euros to keep Alitalia operating as its completes a deal with Abu Dhabi-based Etihad Airways. The deal itself was not discussed at the meeting, sources said, but Alitalia's 2013 budget was approved. Abu Dhabi-based Etihad has been negotiating to invest about 560-million euros in exchange for a 49% stake in the struggling Italian carrier. But talks have snagged on conditions set by Etihad including restructuring of debt that some estimate to be as high as 800-million euros and labour cuts.

Alitalia, which is not publicly traded, did not release its 2013 financial results but reports have suggested it lost as much as 569-million euros. Earlier in the day, a majority of unions approved the labour conditions demanded by the deal, but at least one holdout called for re-negotiation of those conditions. "Now, we need to go back to the table," said Marco Veneziani, deputy secretary-general of Uilt. "We have to make a new agreement". But other Alitalia unions and the company itself said that the current deal remains valid. "About 30% of voters in 25 hours with over 80% in favour," said FIT CISL chief Giovanni Luciano via Twitter. "Quorum not reached, agreement valid," he added. While Etihad's investment will keep Alitalia alive, the United Arab Emirates carrier will increase its access to lucrative European markets.

In addition to labour concerns, other problems still to be resolved relate to concerns raised by investor Poste Italiane, which is seeking assurances it will not be stuck with Alitalia's current debt obligation if it increases its stake. Last year, the Italian postal service invested 75 million euros in Alitalia as part of a government engineered 500-million-euro bailout of the country's flag-carrier.