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Alitalia board approves plan and job cuts

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Air France-KLM remains unconvinced by the deal

The board of Alitalia has approved a new business plan that is likely to include around 2,000 job losses, big salary cuts, a fleet reduction and other measures to try to make the Italian carrier more profitable. However, major shareholder Air France-KLM was unconvinced by the deal.

A source close to the negotiations said that Air France-KLM, which owns 25% of Alitalia, voted against the plan. The source explained: “Air France welcomed the plan but the problem with the debt remains, so they voted against it”.

The new plan includes “severe cost cuts”, Alitalia said in a statement. Its fleet of medium-range aircraft is likely to be slashed while international and intercontinental flights will be increased.

The deadline for shareholders to agree to a €300 million capital increase is being extended to November 27.

Reuters

[pictured: Alitalia McDonnell Douglas MD-82 landing at Heathrow, 2007]

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