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Alitalia: squeeze on Ryanair and low cost to save it

In addition to allocating 3,35 billion (more than to Healthcare) to keep Alitalia on its feet, the Government will require low-cost foreign companies to apply the minimum wages as in Italian employment contracts - Restrictions also at airports

Alitalia: squeeze on Ryanair and low cost to save it

To save Alitalia, the government has developed a double strategy, which unfolds on the financial level but also on the commercial and industrial one.

First, liquidity. The relaunch decree and Care Italian have allocated a sidereal figure for the former national airline: 3 billion and 350 million euros, i.e. 100 million more than what was foreseen for health care.

Second, to protect this investment, the government prepares an anti-low-cost plan. The goal is to reduce the dominance of companies such as Ryanair, EasyJet and Vueling, which push Alitalia out of the market with their low price policy.

The first intervention in this direction will be to oblige all airlines active in Italy to pay employees by applying at least minimum wages established by the national sector agreement. Anyone who does not comply within three months will risk the "revocation of concessions, authorizations and certifications", reads the relaunch decree. Furthermore, for each employee underpaid, the employer may receive a fine ranging from 5 to 15 euros.

Other measures aimed at limiting the overwhelming power of low cost will come with the Simplifications decree, which will contain airport fare cuts and will require those who manage the airports to entrust through public tenders, incentives and contributions today negotiated directly with the companies, almost always low cost.

Overall, these measures will have positive impact on employment, because they will save thousands of jobs in Alitalia and reduce the wage dumping of low cost airlines, ensuring more decent wages for many employees.

On the other hand, the cost will be high not only for taxpayers Italians – who will pay an amount monstre for the umpteenth rescue of Alitalia – but also for consumers, who will see raise ticket prices.

Finally, it is possible that the plan will bring the closure or downsizing of some minor airports, like that of Rimini.

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