Alitalia board approves 2017-2021 business plan

Alitalia's board approved (15-Mar-2017) a turnaround business plan funded by shareholders, subject to trade unions agreeing to a new collective works agreement and headcount-related measures. The plan calls for a cost reduction of EUR1 billion by 2019 with reductions in operating costs and manpower. Revenue is expected to increase by 30% to EUR3.7 billion by 2019. The business plan is supported by four "pillars of change": a recalibrated business model, cost reduction and enhanced productivity, network and partnership optimisation and developing commercial initiatives by utilising technology investments to drive revenue. Further details include:

• The airline will simplify airfares and enable passengers to purchase products such as seat selection, checked-in luggage and priority boarding "throughout the booking process and all the way up to the airport gate";
• A "buy-on-board" concept will be introduced on services of four hours or less, with food, snacks and drinks to be offered "at competitive prices";
• Intercontinental widebody services will retain a full service model with a focus on costs and efficiency;
• In addition to A330s, Boeing 777 aircraft will be fitted with new IFE systems and WiFi. The carrier's new flagship 777-300ER will join the fleet in Aug-2017. [more - original PR]