Alitalia's administrator warned Saturday that time was running out for saving the bankrupt Italian carrier as he met with unions amid stalled talks on a rescue plan. Newly appointed Augusto Fantozzi told unions the company could guarantee flights only until Sunday, and that he would start enrolling Alitalia workers in welfare programs on Monday, according to the ANSA and Apcom news agencies. “Things are falling apart,” Fantozzi was quoted by ANSA and Apcom as saying before the meeting. “The situation is grave,” with creditors knocking on Alitalia's doors, money running out and increasing difficulties in getting fuel supplies, he reportedly said. On Friday, a group of investors tapped to take over Alitalia walked away from what were billed as do-or-die talks with unions, whose approval of the relaunch plan is crucial. Both parties accuse the other of being intransigent. The investors' offer, however, remains on the table, leaving the government and newly appointed administrator Augusto Fantozzi scrambling for a solution. Premier Silvio Berlusconi said he was “very worried” about the situation, and that he could not understand “this suicidal behavior,” ANSA reported. The premier, who has made solving Alitalia a priority of his government, said he was ready to intervene to help break the deadlock. Alitalia, which had been losing some 2 million euros ($3 million) a day, was declared bankrupt on Aug. 29. The move paved the way for the investors to negotiate their plan to buy Alitalia's profitable assets. The rescue plan reportedly envisages a 1 billion euros ($1.4 billion) investment, the merger with Italy's No. 2 airline, Air One, and a partnership with a foreign carrier. Among the sticking points in the talks are new contracts, salary cuts and layoffs that might number some 5,000 out of the airline's 20,000-strong work force. Investors baled out of talks to rescue the national airline Alitalia on Friday, blaming unions for refusing to face up to cutbacks which would avert collapse. All-night talks ran past a deadline set by the government-appointed administrator for a deal to avert bankruptcy for the airline. The deadlock “makes one fear the worst,” Labour Minister Maurizio Sacconi said before investors, including top names in Italian industry, said they were pulling out. Leaders of the main airline workers' unions said early on Friday: “There are insurmountable difficulties, but we have decide to stop... and resume negotiations in the next few hours.” But then the investors, who were prepared to put up one billion euros ($1.4 billion), said that they were ending the talks. Their spokesman said they were “acting on the fact that after seven days of meetings, the conditions no longer exist for the negotiations to continue.”
