Alitalia's management is increasing the pressure on its pilots for concessions with the threat of expanding wet-leases to cut the cost of its North American operations.
Although the initial wet-lease of two B767s from Ansett Worldwide (Awas) can hardly be categorised as union breaking, an internal working document shows Alitalia is considering wet-leasing up to seven 767s from Ansett by 1997.
Managing director Roberto Schisano says a B767 wet-lease gives savings of 30-35 per cent over the carrier's own long haul fleet of B747s and MD-11s. The move appears to be another attempt by senior management to reach a settlement with the pilot union before it can present holding company IRI with a realistic restructuring proposal.
Negotiations are stuck on the issue of a wage freeze until 1996. The pilots are willing to accept a 17 per cent productivity increase, which would take their flying time to 900 hours annually, and put a stop to the practice of automatic aircraft type upgrades during their career. In return the pilots want a salary hike.
'We believe this containment of cost is of real economic benefit to Alitalia and we feel they could give us a return in a salary increase to match the European average,' says Captain Paolo Mariani of ANPAC, the pilot's union.
The threat of more wet-leases may yet convince the pilots that the management is serious about reducing costs and will continue to replace them with wet-lease crews and 767s on its transatlantic operations, without the full concessionary package in place.
But management also appears to be playing the pilots off against the flight attendant unions, which have already agreed full concessionary measures. The two wet-leased B767s include cabin crew and as a result both Alitalia flight attendants and pilots have staged a number of one-day walkouts.
While the Italian carrier's unions may appear united on the surface, in reality the cabin crew are seething. 'We have given money back to Alitalia and the pilots are still requesting more money. They should play their part, as it is important for the company to receive the recapitalisation,' says Alexandro Villra, of the CGIL cabin crew union.
Officially the carrier says it has signed a six-month wet lease contract to give its crew time to train on the B767. However, both Alitalia and Awas acknowledge that discussions are continuing, both to extend that contract and lease more B767s. While the pilots refuse to negotiate, the B767 training programme has been put on ice.
With the political situation shifting daily in Italy, Alitalia's management can only hope that the current apolitical government lasts long enough to see them through the current pilot dispute to the request for new capital.
Without political interference, Schisano can hope to break the unions and push through the restructuring plan. But if an election is called in the next few months, politicians will be all to eager to win votes.
Meanwhile, Italy could incur the wrath of the US DOT and US carriers if it approves Alitalia's application to fly from slot restricted Milan/Linate to the US and Canada. Under the current traffic distribution rules all such flights must operate from the less congested Milan/Malpensa. A DOT source confirms attempts to start the route would cause problems within the framework of the bilateral which calls for equal opportunities.
Meanwhile, Italy could incur the wrath of the US DOT and US carriers if it approves Alitalia's application to fly from slot restricted Milan/Linate to the US and Canada. Under the current traffic distribution rules all such flights must operate from the less congested Milan/Malpensa. A DOT source confirms attempts to start the route would cause problems within the framework of the bilateral which calls for equal opportunities.
Source: Airline Business
