Monday, March 27, 2017

Alitalia to cut 2,000 jobs

Alitalia CEO Cramer Ball has confirmed that up to 2,000 jobs will be cut, which is a 50 per cent reduction in office staff and a 20 per cent reduction in non-flying operational roles, said a report.

"Headcount reductions are a painful but necessary action," said Ball, "but these changes are essential if we are to compete effectively in the extremely tough European aviation market."

The move comes as part of a new restructuring strategy,which identifies a series of actions to boost revenues and reduce costs in order to achieve profitability by 2019, said a report in AeroTime.

The business plan will also see the airline work towards cutting costs by €1 billion ($1.07 billion) by 2019. Two-thirds of these savings will come from non-labor related costs.

The airline currently employs 12,500 people and headcount cuts will include permanent and temporary roles. The plan also contains a new Collective National Labour agreement to make Alitalia’s cost base more competitive.

If Alitalia achieves profitability by 2019, then it will add six new long-haul aircraft between 2019 and 2021, in addition to two aircraft joining in 2017 and 2018. “The airline is also planning to launch 10 new long-haul routes between 2017 and 2021 and to recruit up to 500 new crew members by 2019,” Alitalia said.

Alitalia is 49 per cent-owned by Gulf carrier Etihad Airways, with Italian banks making up most of the remainder.

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