After a meeting that lasted over six and a half hours, the Alitalia Board of Directors today approved the airline's relaunch plan, which envisages a series of radical measures including in particular a cost cut of 1 billion by 2019. The financing of the plan by the shareholders is now subject to the agreement with the trade unions on the new Collective Labor Agreement and on the personnel measures envisaged in the recovery plan.
Alitalia's management will therefore shortly meet the unions to illustrate the details of the plan and the repercussions on personnel (not indicated for now) and to resume discussion on the new Collective Labor Agreement. The meeting will follow the one envisaged between the company and the Government.
Alitalia, by the end of 2019, will therefore reduce costs - operating and labor - by 1 billion euros. Over the same period, a 30% increase in revenues is expected, from the current 2,9 billion to 3,7 billion by the end of 2019. The industrial recovery plan is based on four "pillars": review of the model of business; cost reduction and productivity increase; optimization of the network of connections and partnerships; new commercial initiatives through technological solutions that are already available.
“With the approval of the second phase of the industrial plan, we can accelerate the relaunch of Alitalia. In the first phase, we rebuilt the brand and made major investments in staff training and new technologies; progress that will now allow us to continue along the necessary path of profound change”, said the Chief Executive Officer of Alitalia, Cramer Ball.
“The air transport industry – added the CEO – is constantly evolving and is characterized by ruthless competition: only a radical change can restore a future to our Company. For this we must transform ourselves into a dynamic company, which can attract as many customers as possible, including those now accustomed to the offers of low-cost carriers. I am confident that the next phase of the business plan will be the indispensable step we need, provided all stakeholders play their part,” Cramer Ball stressed.
“The radical measures are necessary to ensure the long-term sustainability of Alitalia. A result that we can only achieve if we have the right size, the right organization, the right productivity and the right cost structure”, continued the manager. “We must put these changes into practice especially in short and medium-haul routes, the only way to be able to return to growth, in the future, also in long-haul flights”.
“This is a crucial aspect because most of our customers fly short- and medium-haul routes and then continue on long-haul connections. And if we are not able to compete with low-cost carriers in Italy and in Europe, then we will also be destined to lose passengers on intercontinental flights. There are simply no alternatives,” concluded Ball.
