An Italian union said on Wednesday that it is willing to enter negotiations to help to meet conditions set by Etihad Airways for investing in Alitalia after talks between the airlines stalled.
Loss-making Alitalia was kept afloat by a government-engineered 500 million euro (Dh2.53 billion) rescue package last year but needs to find a cash-rich partner quickly to revamp its flight network or risk having to ground its planes.
Abu Dhabi-based Etihad has been looking at Alitalia’s books for a possible investment since early this year, but the prospect of heavy job cuts at Alitalia and its debt of at least 800 million euros have been major hurdles.
“At the moment, there is a bit of a stalemate,” a source close to the matter said on Wednesday.
“Beyond debt, there are issues around job cuts, legal aspects and problems related to infrastructure, and Etihad wants all points resolved. They want to invest in an Alitalia that carries no dead weight.”
Etihad sent a letter to Alitalia last week outlining its conditions for a possible investment, including up to 3,000 job cuts out of Alitalia’s 14,000-strong workforce, the source said.
Any large job cuts are likely to stir opposition from Italy’s notoriously feisty and powerful unions. However, the head of the UIL, one of the main Alitalia unions, said his group is prepared to negotiate.
“We are willing to do our part to get to an agreement,” UIL’s Luigi Angeletti said in an interview with RaiNews24. After speaking with Alitalia’s chief executive, Mr Angeletti confirmed that labour costs and the airline’s debt were the main stumbling blocks in the talks.
Etihad has so far refused to negotiate with Italy’s unions, which have sunk negotiations between Alitalia and other bidders in the past.
Etihad, which could invest up to 500 million euros and buy a 49 per cent stake in Alitalia, also wants the airline’s creditors to restructure nearly half of the airline’s debt, sources have said.
However, the banks - which are also big shareholders in the airline - have been unwilling to make sacrifices without a clear guarantee that the company can be turned around.
Disagreements over a debt restructuring already scuppered efforts by Alitalia to secure more capital from its shareholder Air France-KLM last year. Air France-KLM eventually allowed its 25 per cent stake to be diluted to about 7 per cent.
Alitalia declined to comment on the status of the talks. Etihad could not immediately be reached for comment.
* Reuters
UAE currency: the story behind the money in your pockets
'Midnights'
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The smuggler
Eldarir had arrived at JFK in January 2020 with three suitcases, containing goods he valued at $300, when he was directed to a search area.
Officers found 41 gold artefacts among the bags, including amulets from a funerary set which prepared the deceased for the afterlife.
Also found was a cartouche of a Ptolemaic king on a relief that was originally part of a royal building or temple.
The largest single group of items found in Eldarir’s cases were 400 shabtis, or figurines.
Khouli conviction
Khouli smuggled items into the US by making false declarations to customs about the country of origin and value of the items.
According to Immigration and Customs Enforcement, he provided “false provenances which stated that [two] Egyptian antiquities were part of a collection assembled by Khouli's father in Israel in the 1960s” when in fact “Khouli acquired the Egyptian antiquities from other dealers”.
He was sentenced to one year of probation, six months of home confinement and 200 hours of community service in 2012 after admitting buying and smuggling Egyptian antiquities, including coffins, funerary boats and limestone figures.
For sale
A number of other items said to come from the collection of Ezeldeen Taha Eldarir are currently or recently for sale.
Their provenance is described in near identical terms as the British Museum shabti: bought from Salahaddin Sirmali, "authenticated and appraised" by Hossen Rashed, then imported to the US in 1948.
- An Egyptian Mummy mask dating from 700BC-30BC, is on offer for £11,807 ($15,275) online by a seller in Mexico
- A coffin lid dating back to 664BC-332BC was offered for sale by a Colorado-based art dealer, with a starting price of $65,000
- A shabti that was on sale through a Chicago-based coin dealer, dating from 1567BC-1085BC, is up for $1,950
UAE currency: the story behind the money in your pockets
If you go
Flights
Emirates flies from Dubai to Phnom Penh with a stop in Yangon from Dh3,075, and Etihad flies from Abu Dhabi to Phnom Penh with its partner Bangkok Airlines from Dh2,763. These trips take about nine hours each and both include taxes. From there, a road transfer takes at least four hours; airlines including KC Airlines (www.kcairlines.com) offer quick connecting flights from Phnom Penh to Sihanoukville from about $100 (Dh367) return including taxes. Air Asia, Malindo Air and Malaysian Airlines fly direct from Kuala Lumpur to Sihanoukville from $54 each way. Next year, direct flights are due to launch between Bangkok and Sihanoukville, which will cut the journey time by a third.
The stay
Rooms at Alila Villas Koh Russey (www.alilahotels.com/ kohrussey) cost from $385 per night including taxes.
Honeymoonish
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Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
The National in Davos
We are bringing you the inside story from the World Economic Forum's Annual Meeting in Davos, a gathering of hundreds of world leaders, top executives and billionaires.
Players Selected for La Liga Trials
U18 Age Group
Name: Ahmed Salam (Malaga)
Position: Right Wing
Nationality: Jordanian
Name: Yahia Iraqi (Malaga)
Position: Left Wing
Nationality: Morocco
Name: Mohammed Bouherrafa (Almeria)
Position: Centre-Midfield
Nationality: French
Name: Mohammed Rajeh (Cadiz)
Position: Striker
Nationality: Jordanian
U16 Age Group
Name: Mehdi Elkhamlichi (Malaga)
Position: Lead Striker
Nationality: Morocco
LEAGUE CUP QUARTER-FINAL DRAW
Stoke City v Tottenham
Brentford v Newcastle United
Arsenal v Manchester City
Everton v Manchester United
All ties are to be played the week commencing December 21.
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