PINO MODOLA / GENOA
Alitalia has unveiled its latest cost-cutting plan, including a 6-7% reduction in flights and a similar cut in staff numbers. About 1,200-1,400 staff are expected to be shed and senior management changes are likely in the near term.
The first quarter of 2003 saw Alitalia's earnings fall by 6.9%, following a g50 million ($55 million) drop in sales, and continuing sluggish demand in the wake of the Iraq war has prompted the company to implement its latest recovery plan.
Alitalia chief executive Francesco Mengozzi wants the airline to be privatised "as soon as possible, before it is too late and all the 'great games' are over". He fears the carrier could find itself "marginalised" as the last European state-controlled airline. Mengozzi confirms that Alitalia is in ongoing negotiations with privately owned Meridiana to prepare a co-operation plan to be presented to the shareholders of the two Italian airlines. Financial sources say the talks should result in Alitalia buying a significant share of Meridiana's stock.
Meanwhile, Alitalia's regional unit Alitalia Express has received the sixth of 10 ATR 72-500s on order as part of a g300 million development plan launched in June 2002, which is intended to double the size of the unit's aircraft fleet by 2004. Also on order are 15 Embraer ERJ-145s and six 170s.
Source: Flight International
