Air Transport

Italian investment consortium Compagnia Aerea Italiana (CAI) is said to have agreed to put forward its offer to rescue flag-carrier Alitalia, despite earlier indications that the plan could fall through.

Four of Alitalia's nine trade unions today affirmed their support for the rescue which centres on a combination of Alitalia and Air One activities, backed by substantial investment.

But a potentially-damaging split with the other five unions, including those representing pilots and flight attendants, had threatened to derail CAI's plan to submit a formal offer for the airline by today's deadline.

Widespread reports in the Italian media state that CAI has opted to proceed with its scheme despite the lack of full union backing.

Failure by CAI to commit to a rescue would have left Alitalia facing a bleak future, with dwindling cash reserves, a threat of being grounded, and virtually no prospect of securing alternative investment.