|Alitalia aircraft on runway. Photo: BriYYZ via flickr
[Avionics Today 01-22-2014] The board of floundering Italian flag carrier Alitalia has revealed a new business strategy following the completion of equity investments by Etihad Airways for a 49 percent stake in the airline.
The new Alitalia commenced operations on Jan. 1, and will introduce new routes, as well as bring up to speed its product and service standards, cost management strategy and branding
"In a market still beset by the continuing Eurozone crisis, anything other than rapid, decisive change is simply not an option,” said James Hogan, president and CEO of Etihad Airways. “This is the right strategy, with the right management team to lead it. But there should be no doubts at all: we have made a commercial investment that must deliver a commercial return. We've invested in the new Alitalia because we believe it can flourish again.”
Hogan noted that Alitalia's major investors set a clear deadline for the airline to deliver profitability under the new strategy by 2017.