Andy Nativi/GENOA

Alitalia has committed to a L2,000 billion ($1.1 billion) fleet upgrade of its Alitalia Express and widebody fleets, despite facing strike action by its workforce and downgraded performance estimates for the year.

The airline's board has approved the purchase of five Boeing 747-400s, with deliveries from the first quarter of 2001. These will replace 747-200s, and will improve the Italian carrier's long haul fleet compatibility with its partner KLM, which operates 19 747-400s.

Alitalia has also ordered six ERJ-145s, plus 10 options, for Alitalia Express. The aircraft on firm order will be delivered from April next year, with the options due from 2001 to 2003. The 50-seat regional jets will replace six ATR 42s on Italian domestic services from Milan Malpensa.

Alitalia Express operates nine ATR-42s and four ATR-72-210As, with three of the ATR-42 turboprops to be replaced with ATR-72-500s later this year.

As well as developing Alitalia Express' domestic network, the ERJ-145s could also be deployed on services to be operated by a new southern Italy-based regional carrier which Alitalia proposes to launch next year.

Meanwhile, unions representing the airline's workforce have issued a strike notice from 23 June. The pilots are renegotiating three-year contracts, and ground staff are seeking a bonus following two years of improved performance by the airline.

The major strike threat to the airline comes from Alitalia's 4,300 cabin crew, however. Cabin crew are employed on two different contracts, based on length of service, but Alitalia wants to introduce a single contract that would bring down the wages of the most senior cabin crew.

The contract negotiations follow the airline board's downgrading of performance estimates for the year. It previously expected a positive performance for the current financial year, with a profit of about L400 billion, but is now predicting no profit.

Alitalia has been hit by a slow start to operations at the Milan Malpensa hub, increased competition, air traffic control problems and the effects of the Kosovo crisis.

Source: Flight International