Alitalia could cut up to 2,000 jobs as controlling shareholder Etihad Airways pushes for sweeping changes to turn the loss-making airline around, according to sources close to the matter. The Italian carrier may also ground at least 20 planes to cut certain unprofitable routes on domestic and regional services where it is struggling to compete with low-cost rivals and high-speed trains, the sources told Reuters. It is likely to remain loss-making for the next two to three years even if it carries out the job cuts of around a sixth of its workforce and the plane groundings, said one of the sources. But a failure to slow the airline's decline and ultimately reverse its fortunes would not only see Abu Dhabi state-owned Etihad take further financial hits on its investment, but deal a significant setback to its European expansion ambitions. It would also represent a defeat for the Italian government, which regards Alitalia as a strategic asset and a matter of national pride, denting its industrial strategy aimed at attracting foreign investment. Yet Rome is in a tough position, as news of possible job cuts at Italy's flag carrier come at a sensitive time - days from a Dec. 4 referendum on constitutional reforms that Prime Minister Matteo Renzi has staked his political future on. Alitalia said the next phase of its industrial plan would be presented to its board of directors and its staff soon and that it would not comment on any speculation until then.<br/>
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The CE of Kenya Airways, Mbuvi Ngunze, has resigned from the lossmaking airline three weeks after being declared “vital” to the company’s turnround by its chairman. Michael Joseph, who became chairman last month after a staff rebellion over the perceived slow pace of reform, said on Thursday that Ngunze would leave the airline in the first quarter of next year. He has been chief executive of the airline for two years. Joseph, a former CE of Safaricom, Kenya’s dominant mobile telecoms operator, said he hoped a new CE would be appointed within three months and would have “the relevant airline experience”, something Ngunze did not have before he joined Kenya Airways five years ago. Kenya Airways has been left with about US$1.4b of debt following a botched expansion plan six years ago, which was undermined by a slump in passenger numbers after terrorist attacks and the 2014 Ebola outbreak. Analysts estimate that it will need up to $1b to restore its balance sheet. It has sold several of its aircraft and unwound unfavourable fuel hedging positions.<br/>