Loss-making Alitalia to present new business plan to Italian government

According to Etihad Airways, the Italian flag-carrying airline Alitalia, together with its shareholders, is to present a new business plan to the Italian government next Monday. This move comes subsequent to the loss-making Italian airline approving a short-term finance deal last December, together with a new strategy which will include job losses.
The Abu Dhabi airline, Etihad, will be represented by its most senior executive, James Hogan, who is also Vice Chairman of Alitalia. State-owned Etihad acquired a 49% stake in Alitalia in 2014 as part of a US$1.85 billion rescue plan, pledging to return it to profit by 2017 through substantial cost cutting, converting Rome into an intercontinental hub, and the addition of further lucrative long-haul connections. However, sources have indicated that Alitalia is still losing over half a million dollars every day and that it is unlikely to turn a profit for at least another two to three years. The most-recent proposals include shedding up to 2,000 jobs, plus the removal of certain unprofitable routes, and the grounding of a minimum of 20 aircraft, according to additional sources. However there is a certain amount of doubt surrounding the likely success of these proposals without considerable opposition from influential unions.