Alitalia five-year restructuring plan approved by board of directors

Airline Industry Information, Oct 8, 2001

AIRLINE INDUSTRY INFORMATION-(C)1997-2001 M2 COMMUNICATIONS LTD

The Italian national airline Alitalia has announced plans to cut costs, sell non-core assets and redesign its route network.

The board of the airline approved a five-year industrial plan when they last met on Thursday (4 October).

Alitalia has already drawn up plans to cut 2,500 jobs and reduce its routes. A 'crisis surcharge' has also been brought into operation that amounts to an extra EUR6 on the cost of each leg of a journey. In addition Alitalia's headquarters in Rome are set to be sold and a search for partners for the carrier is underway.

The restructuring plans come in response to the industry downturn due to the terrorist attacks of 11 September.

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