Alitalia to commence plans for cost reductions by Feb-2017

Alitalia board of directors approved (22-Dec-2016) the second phase of the airline's business plan. The directors agreed on short-term funding to enable Alitalia's management team to commence negotiations with lessors, distributors, unions and suppliers to elicit their commitment to cost reductions by Feb-2017. Alitalia CEO Cramer Ball stated it is "vitally important" Alitalia's major stakeholders and partners embrace and accept "the radical changes" to gain future funding from shareholders. Alitalia will present the second phase of business plan to its staff in Jan-2017. Changes to the business model include:

• Developing the long-haul flight network;
• Reworking the narrowbody business;
• Reducing costs and improving productivity to match competitors;
• Reevaluating JV agreements;
• Deepening existing partnerships and adding commercial relationships;
• Leveraging investments to drive revenue;
• Reducing staff numbers. [more - original PR]