WHEN employees of Alitalia were offered the chance on April 25th to vote for pay cuts and redundancies to save the troubled airline, they spurned the opportunity. In some ways it is difficult to blame them. After all, in the past they have been able to rely on the Italian government to come to the rescue of the country’s flag carrier. 

That may not happen this time. Alitalia has lost billions of euros over the past decade. (Indeed, over its 70-year history its accountants have barely had need for a black pen.) The firm had pinned its hopes on a €2bn ($2.2bn) capatilisation plan. But that had been dependent workers accepting cuts that were negotiated by the government and agreed with trade unions. With the workers’ no vote, that cash is now off the table.

Alitalia has been here many times before. In 2008 it was placed into bankruptcy after the government blocked plans for a sell-off. In 2014, with the airline on the verge of failing yet again, the government helped broker a deal with Etihad, a Middle Eastern superconnector, which took a 49% stake. A plan to make Alitalia Continue reading