Alitalia dismisses new cuts plan reports

This story is sourced from

Italian carrier Alitalia has moved to deny reports that it has submitted a new business plan and dismissed speculation about widespread cuts.

The under-pressure Italian carrier, which has just secured a vital lifeline after its shareholders approved a €300 million ($405 million) capital increase, released a statement today denying local media reports that it has submitted a new business plan. It dismissed the rumours of cuts to jobs, fleet and routes as groundless.

Media reports had suggested the business plan called for the cutting of around 2,000 jobs.

Speculation has been rife over the extent of restructuring minority shareholder Air France-KLM might possibly seek in return for further investing in the Italian carrier. It has previous said it was open to investing in the airline but with "strict conditions".