Alitalia to go into administration as Etihad looks on

The decision follows the rejection of a restructuring proposal by workers last month.

Etihad Airways which had invested in the airline and said it had been prepared to recapitalise and finance the restructuring backed the move. When the rescue package was originally mooted, the unions had agreed to support the moves.

Alitalia say that two-thirds of the structural cost cuts are unrelated to labour but the negative vote means the airline cannot proceed with the restructring.

Although schedules are continuing as normal t Alitalia said tit was unable to proceed becasue of the negative vote by the workforce and now faces a serious economic and financial situation. "