 "Airlines display crafts at India Aviation 2016 at Begumpet Airport in Hyderabad on Wednesday PTI")
Alitalia could cut up to 2,000 jobs as controlling shareholder Etihad Airways pushes for sweeping changes to turn the loss-making airline around, according to sources close to the matter.
The Italian carrier may also ground at least 20 planes to cut certain unprofitable routes on domestic and regional services where it is struggling to compete with low-cost rivals and high-speed trains, the sources told Reuters.
It is likely to remain loss-making for the next two to three years even if it carries out the job cuts of around a sixth of its workforce and the plane groundings, said one of the sources.
But a failure to slow the airline’s decline and ultimately reverse its fortunes would not only see Abu Dhabi state-owned Etihad take further financial hits on its investment, but deal a significant setback to its European expansion ambitions.
