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No layoffs in new industrial plan, Alitalia tells unions

Troubled airline looking for partner as it hemorrhages money

10 December, 20:13
No layoffs in new industrial plan, Alitalia tells unions (see related) (ANSA) - Rome, December 10 - Alitalia CEO Gabriele Del Torchio on Tuesday promised unions no one will be laid off under the ailing flagship carrier's revised industrial plan, which contains 128 million euros in savings on labor costs. Sources earlier said Alitalia's new industrial plan could include up to 2,600 job cuts out of the airline's total workforce of 14,000 people.

The airline has raised enough cash to keep flying through Christmas as part of a government-engineered bailout to keep Alitalia going while it searches for a new partner willing to revamp its fleet and make it profitable. With daily losses reportedly reaching 700,000 euros and net debt of more than 800 million euros, the company might have to ground its fleet within six months unless that partner is found, analysts said.