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Alitalia braces for strike in face of financial crisis

Alitalia faces a strike by multiple trade unions and professional associations Feb 23 that will force it to cancel 60% of flights that day. The walkout by unions representing some pilots, cabin crews and other staff will last for 24 hours, while other groups plan a more limited, 4-hour walkout. The strike is being planned despite the airline being at a “critical” stage, according to its CE, and in dire need of a more sustainable financial base. Alitalia declined to go into reasons for the dispute, but news agency ANSA said the unions described the strike as “the only democratic tool to safeguard workers’ rights at this time.” The carrier is losing money heavily and is trying to find ways of cutting costs. Job cuts are anticipated, which has angered several unions. The airline has to present a new business plan to govt ministers by the end of this month. <br/>

Air France plans to fight budget rivals on costs, not fares

Air France pilots approved the carrier’s plan to carve out a new, lower-cost business to counter increasing pressure from rivals, marking a rare agreement with workers after years of contentious labour relations at the carrier. Flight-deck employees, represented by the SNPL union, voted 58.1% in favour of the proposal to create the unit, provisionally dubbed Boost. Further talks are needed to refine the plan, it said. The approval bolsters Air France-KLM CE Jean-Marc Janaillac’s strategy to generate consistent earnings in the face of industrywide competition in Europe from both discount regional airlines and high-end Persian Gulf carriers. He has taken a more conciliatory approach toward labour than his predecessor, Alexandre de Juniac, who once proposed forming a new low-cost airline without asking pilots first. <br/>