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Alitalia to raise funds in capital increase, cut jobs in new business plan

Alitalia to raise funds in capital increase, cut jobs in new business plan

Italy's struggling national carrier, Alitalia, said Wednesday it would raise money in a capital increase and cut jobs as part of a new business plan designed to stem heavy losses.
The airline, which loses close to euro2 million (US$2.7 million) a day, declined to say in a statement exactly how much money it plans to raise or how many jobs it plans to cut.
People familiar with the situation told Dow Jones Newswires that the 49.9 percent state-owned company plans to raise up to euro1.5 billion (US$2 billion) and cut staffing by up to 1,000 in a business plan to be discussed at a board meeting Thursday.
Alitalia said the number of job cuts hadn't been determined yet.
A government auction to sell a controlling stake in the airline failed in July after bidders pulled out one-by-one, complaining the terms were too onerous.
The government says it still wants to shed its 49.9 percent stake but has handed responsibility for finding a buyer to Alitalia's management.


Updated : 2020-12-01 13:30 GMT+08:00