Alitalia will start insolvency proceedings after workers rejected its latest rescue plan, making it impossible for the loss-making Italian airline to secure funds to keep its aircraft in the air.
Workers on Monday rejected a plan to cut jobs and salaries, betting the government will be asked to call in an administrator to draft an alternative rescue plan.
The flag carrier, 49 per cent-owned by Etihad Airways, has made an annual profit only a few times in its 70-year history. The company, with around 12,500 employees, is losing at least 500,000 euros ($A720,615) a day and is set to run out of cash in coming weeks, sources familiar with the matter have said.
Alitalia was seeking worker backing to unlock fresh funds from shareholders and launc…
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