Meridiana Is Cutting Its DC-9 Fleet But Adding MD-82
Italy's second-largest airline, Meridiana, is fighting to stay in profit as high operating costs and declining domestic traffic threaten major losses in 1997.
The carrier made a L25 billion ($16.5 million) pre-tax profit in 1995, but expects to achieve little more than break-even this year. "If nothing decisive is done1997 will close with Meridiana some L35 billion in the red," warns a source close to the airline.
Meridiana is working on a cost-cutting plan, designed to save up to L29.5 billion in 1997, with the aim of returning the airline to profit again in 1999.
The airline still has to secure a package of productivity improvements plus wage and benefit cuts from its 1,250-strong workforce. Flight crews are being targeted since they fly only 500h a year - around 100h less than flight crew on most airlines.
To sweeten the pill, and following the example set last year by Alitalia, the largest shareholder in Meridiana, the Aga Khan (with 96% of the stock) has offered employees a 20% holding in the airline
Meanwhile, Meridiana is planning to add eight further McDonnell Douglas MD-82s to its fleet, replacing six DC-9-51s. The fleet will then comprise 16 MD-82s and four British Aerospace 146-200s for use on the short runway at Florence airport.
Source: Flight International
