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Air One plans layoffs, route changes for Alitalia

Italian airline Air One’s turnaround plan for Alitalia includes 2,300 layoffs and moving some intercontinental routes from Milan’s Malpensa airport to Rome Fiumicino, Italian daily newspaper La Stampa reported Wednesday. Air One, Italy’s second-largest airline after Alitalia, is also looking at maintaining most of Alitalia’s ground services business - which Air France-KLM would prefer to scrap - in an effort to win labor union support for its plan, the newspaper reported.

Air One, Air France-KLM and Lufthansa are expected to present non-binding bids for the Italian government’s controlling stake in Alitalia by next week.

Alitalia said late Tuesday it will use a board meeting to be held by Dec. 15 to identify the interested party to begin exclusive negotiations with.