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| Management plans to slash the workforce
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Troubled Italian airline Alitalia has revealed a
restructuring plan which would involve the loss of 5,000 jobs.
The announcement came after a meeting with representatives of nine
unions, who have yet to react officially.
The redundancies would represent close to a quarter of the
state-controlled carrier's 20,700 staff.
The plan would see Alitalia split into AZ Service and AZ Fly, with the
airline breaking even in 2006, and making 1.027bn euros by
2008.
Alitalia Fly would manage air transport activities, with 7,800 staff,
and Alitalia Service would handle the ground service business with 8,500
staff.
The redundancy plan would see the loss of 1,570 crew jobs (made up of
450 pilots, 1,050 flight attendants and 70 flight operation service
staff).
Among ground staff, the company intends to cut 1,440 maintenance jobs,
900 in handling, 360 in marketing and sales, 610 corporate jobs and 120 in
cargo transportation.
Trading in Alitalia shares had earlier been suspended at the close of
the Milan stock market, after they had closed up 4% to reach 0.22 euros.
Alitalia needs to get unions to agree to the plan
by 15 September in order to qualify for a bridging loan
of 400m euros.
Alitalia previously said it would have sufficient financial resources
to operate until the end of March 2005 if it obtains the bridging loan.
EU's transport commissioner Loyola de Palacio has warned that any cash
injection from the state under a deal where the government remains a
majority shareholder would be rejected by the Commission.
As much as 2bn euros is thought to be needed to keep the 57-year-old
airline flying.
Alitalia made a net loss of 520m euros in 2003 after making a profit
the year before.
(Agencies) | 
Updated: 2004-09-07 11:05