2,200 jobs to go in ‘painful’ Alitalia shake-up

2,200 jobs to go in 'painful' Alitalia shake-up
Gabriele del Torchio, Alitalia's chief executive, said the airline would go through a "complex, tiring and painful" restructuring. Alitalia photo: Shutterstock
Struggling Italian airline Alitalia will have to shed 2,200 jobs as part of its planned tie-up with Etihad Airways, which has promised to invest €560 million, the head of the Italian airline said on Monday.

Negotiations have been running for months for the Emirati airline to take a 49 percent stake in Alitalia, which currently employs 12,800 people and is facing bankruptcy.

The Italian airline will have to go through a restructuring that is "complex, tiring and painful – there is no alternative," said Gabriele del Torchio, Alitalia's chief executive, on the sidelines of a conference in Rome.

It had previously said as many as 2,500 jobs were on the line.

The airline's management hopes to finalize a deal on the company's debt by Friday. Del Torchio said talks with banking creditors were "very advanced", and that they were demanding "a sacrifice".

"I think it will take only a few weeks to conclude the deals with Etihad," he said, adding that a successful deal would send "an important signal" about Italy to foreign investors.

AirFrance-KLM also owns a stake in Alitalia, but chose not to pursue taking over the Italian airline after it could not get similar guarantees on deep restructuring to make it profitable.


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