Unions ready to negotiate with Etihad over Alitalia deal

Talks between the two stalled over issues of debt and job cuts.
The agency reported that loss-making Alitalia was kept afloat by a government-engineered $691 million 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 $925 have been major hurdles in the talks and Etihad's stance appears to have hardened in recent weeks.
Industry analyst Saj Ahmad said: “That unions want to enter into talks with Etihad points to them being proactive in the sense that they can stave off large scale job cuts that Etihad is seeking as the price for an equity infusion.
“The biggest problem with Alitalia is that if it balks at Etihad's demands, then the airline faces a very real collapse and the banks that are also shareholders in Alitalia stand to lose out - Etihad is negotiating from a position of strength and the bank shareholders fear a dilution of their power if Etihad gets its way.
“Etihad won't be reckless and pursue Alitalia forever - Etihad has better European access and partners already and they can walk away if they feel Alitalia is dragging its heels. The real question is whether Alitalia has the mettle to change its position to get Etihad to invest - there is of course a danger, in their mind, that Alitalia will have to make further sweeping changes if Etihad buys a stake, but Alitalia is such a toxic mess, the Italian carrier has little time or options to be obstinate. It really is make-or-break time for them.”
Etihad has so far refused to negotiate with Italy's unions, which have sunk negotiations between Alitalia and other bidders in the past.