Alitalia needs "drastic and courageous" action, its chairman said Thursday after a government minister blamed poor management for a looming crisis at the carrier, which is 49 percent owned by Etihad Airways. Reports that the country's flagship airline is about to announce up to 1,600 new redundancies have turned the spotlight on Etihad's de facto control of Alitalia, which was rescued from bankruptcy in 2014 by the Gulf carrier.
Economic Development minister Carlo Calenda, who met Etihad and Alitalia executives earlier this week, criticised them for airing the possibility of redundancies without first outlining a strategy to get the long-struggling company back on track. "The situation at Alitalia tells us that the company has been poorly managed," Calenda told Radio Anch'io. "It is a totally private company that has significant organisational problems." The minister went on to say that management mistakes should not "fall on the shoulders of the employees." Alitalia's chairman, former Ferrari boss Luca Cordero di Montezemolo, said redundancies could not be ruled out. "We need a drastic and courageous plan," he told reporters in Rome, playing down tensions with the government while also emphasising that Alitalia had to address its high cost base relative to leaner low-cost rivals.