Saturday, September 20, 2008

Italian minister: 3,250 layoffs in Alitalia plan


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ROME: A plan to salvage the profitable part of Alitalia will include 3,250 layoffs, Italy's labor minister said Thursday as key discussions with unions on the future of the bankrupt airline continued.

Maurizio Sacconi indicated that jobs will be lost both at the national carrier and at Italian rival Air One, which is expected to be merged with Alitalia.

"Those who have presented the offer estimate that out of 17,500 structurally employed by Alitalia and Air One, 14,250 should be re-employed by the company itself or by other companies" connected to the new carrier, Sacconi told reporters.

The minister spoke on the sidelines of talks on the plan with the nine unions representing Alitalia workers.

The figure Sacconi gave was much lower than previous reports of 5,000-7,000 layoffs, but didn't appear to address the fate of employees with temporary contracts that are part of Alitalia's 20,000-strong work force.

Raffaele Bonanni, head of the CISL labor confederation, said it was "reassuring" that the layoffs would be lower than expected, but added that the figures "will have to be verified."

Alitalia sought bankruptcy protection last week and former finance minister Augusto Fantozzi was named by the government as the company's administrator as part of the plan to restructure the unprofitable and debt-laden national carrier.

The plan reportedly calls for breaking Alitalia into two parts, with the profitable assets to be taken over, along with Air One, by a group of Italian investors ready to inject €1 billion (US$1.5 billion). The other assets, including the cargo and heavy maintenance units, are expected to be liquidated.

The Italian investors are headed by Roberto Colaninno, the chairman of motorcycle and scooter maker Piaggio, who is expected to become chairman. Rocco Sabelli, a veteran executive who has often worked with Colaninno, has been tapped as chief executive.

Sabelli reportedly told union leaders during Thursday's talks that the new Alitalia should break even in two years.

According to Italy's ANSA news agency, Sabelli said the company would serve 75 national and international destinations relying on a renewed fleet of 137 planes in 2009, to be increased to 158 in 2013. Alitalia now has 173 planes.

The plan is conditional on approval by unions, which earlier this year sunk a bid for Alitalia by Air France-KLM. Sacconi and Fantozzi have called on the unions to agree to the plan by the end of next week because the airline cannot keep flying much longer.

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