ROME: Mr. Cramer Ball, CEO Alitalia has told that the airline is going to reduce 50 percent office Staff and 20 percent non flying operational staff, which means cutting around 2000 jobs.
“Headcount reductions are a painful but necessary action,” said Ball, “but these changes are essential if we are to compete effectively in the extremely tough European aviation market.”
The move comes as part of a new restructuring strategy, which identifies a series of actions to boost revenues and reduce costs in order to achieve profitability by 2019, said a report.
The airline currently employs 12,500 people and headcount cuts will include permanent and temporary staff. The plan also contains a new Collective National Labour agreement to make Alitalia’s cost base more competitive.
If Alitalia achieves profitability by 2019, then it will add six new long-haul aircraft between 2019 and 2021, in addition to two aircraft joining in 2017 and 2018. “The airline is also planning to launch 10 new long-haul routes between 2017 and 2021 and to recruit up to 500 new crew members by 2019,” Alitalia said. Alitalia is 49 per cent-owned by Gulf carrier Etihad Airways, with Italian banks making up most of the remainder.