Alitalia SpA, Italy’s largest airline, faces strikes and airport blockades should CEO Giancarlo Cimoli seek bankruptcy protection for the carrier, cut thousands of jobs or break up the company, union officials said.

Alitalia SpA, whose chief executive officer was replaced last month amid union opposition to job cuts, may report a fifth straight quarterly loss tomorrow, underscoring the need for Italy’s biggest airline to reduce operating costs.

THERE should be little immediate impact on Aer Lingus and Ryanair following the merger of Air France and Dutch carrier KLM to create Europe’s biggest airline, analysts predicted last night.