Alitalia over the weekend secured a new agreement with the unions representing its cabin crew, the last of the airline’s labor groups to come to terms on a new deal. The carrier’s pilots and ground staff agreed to new contracts last week (ATWOnline, Sept. 17). According to media outlets, the flight attendants’ agreement includes 900 job cuts and will result in savings of eur90 million ($97.2 million) per year.
In total, Alitalia’s new labor agreements will result in 3,789 job cuts and achieve eur292 million in cost savings per year as calculated by ATWOnline. This is slightly less than the 5,000 job cuts and eur310 million in annual savings CEO Giancarlo Cimoli originally was seeking from the labor groups.
The new agreement also should unlock a eur400 million government-guaranteed bridging loan, enabling Alitalia to keep flying until next March. Management repeatedly has warned that it only has sufficient cash to keep the company afloat until the end of this month without an infusion of new funds