It is not yet certain whether Avianova's turboprops will be transferred
Alitalia is facing a record year-end loss says chief executive Domenico Cempella, but he forecasts that the airline will swing back into the black in 1997 as the recently approved state aid feeds through.
Cempella says that losses are likely to mount to L1,200 billion ($800 million) this year, on sales in the region of L8,000 billion. The loss includes a spend of around L800 billion on restructuring, on top of an underlying operating deficit of L400 million.
Cempella is nevertheless upbeat about the effects of the restructuring, including a fall in group labour costs, which are expected to drop by 4-5% in 1996 following the union agreement reached in June.
The airline, which recently won agreement for a Government cash injection of L3,000 billion, should be back in profit in 1997, he says. The initial estimate is for 1997 profits of around L170 million. One main part of the recovery plan got under way on 13 November with the launch of the low-cost Alitalia Team operation.
The new company is running 270 of the group's 1,300 daily flights with 22 aircraft, as well as the option to take on a range of Avianova's turboprops. The aim is to build up the fleet to 33 aircraft by April, comprising 17 Airbus A-321s, ten McDonnell Douglas MD-80s and six Boeing 767s. Team Alitalia will employ 1,620 and is expected to generate some L700 billion in sales.
Source: Flight International
