The Italian government and trade unions have reached a deal over crisis-ridden Alitalia that halts further strike action, replaces the carrier's two-month old management team and commits to reducing or deferring proposed job cuts.
Unions have held strikes protesting over plans to cut 1,500 jobs and outsource a further 1,200. Trading in the airline's shares was suspended last week before the talks between the government, which owns 62% of Alitalia, and unions. Their value slumped after management warnings of the carrier potentially entering administration if labour did not agree to the job cuts.
The deal sees Giancarlo Cimoli, former chief of the Italian railways and an expert in turning around troubled companies, replacing Marco Zanichelli as the airline's president and managing director. A capital injection from the private sector will be required as the government is forbidden by European Commission rules to bail out the carrier. Meanwhile, Alitalia's cash reserves have fallen from €511 million ($617 million) at the end of 2003 to just €200 million. Last year Alitalia made an operating loss of €373 million.
PINO MODOLA / GENOA
Source: Flight International
