Alitalia unions must decide on contract

ROME, Sept. 17 (UPI) -- Airline unions in Italy have until Thursday to agree on a plan to create a new national carrier using the flight operations of failed Alitalia, investors say.

Members of Compagnia Aerea Italiana are scheduled to meet to decide whether go ahead with the plans to create new Alitalia, the Italian news agency ANSA reported Wednesday. The biggest barrier to the consortium's plans is that Alitalia staff must accept a single contract covering all employees instead of individual contracts for each union.

Italy's four leading trade unions already gave a nod to the plan, while Alitalia's other five unions seek modifications, ANSA said.

In related developments, Augusto Fantozzi, Alitalia's government-appointed administrator, said the airline was spending roughly $2 million a day on fuel and was running out of funds. About 40 flights were canceled Wednesday because of an action by a union representing ground crew.

In August, the government modified Italy's bankruptcy laws to allow the failing national carrier to be declared insolvent then divided it in two with Alitalia's profitable flight operations placed in a new company and put up for sale.