sky

Talks between Alitalia, labour unions and the dragged into the evening Thursday as workers baulked at the prospect of heavy job and salary cuts that the carrier says are necessary to keep operating. The latest turnaround plan for the ailing airline envisages cutting more than 2,000 jobs among ground staff and reducing flight personnel's salaries by up to a third in a last-ditch attempt to make the company profitable. The govt had hoped to win union backing for the plan by April 13, so that investors in the airline, which include Etihad Airways with a 49% stake and Italy's top 2 banks Intesa Sanpaolo and UniCredit, could launch a cash call on the following day. But the unions, whose support for the plan is crucial for shareholders to unlock fresh financing, said they were unwilling to accept any further sacrifices. <br/>

Garuda Indonesia has appointed bank executive Pahala Mansury as its new CE, in a management shake-up following a major plunge in its 2016 net profit. Mansury, formerly CFO at Bank Mandiri, replaces Arif Wibowo, who was appointed as president and CE in Dec 2014. Prior to that, he was CE at Citilink, before taking on the top job at the carrier. Together with Arif, director of operations Novianto Herupratomo, director of engineering and information technology Iwan Joeniarto and commercial director Toni Soetirto were also dismissed. The carrier's operating profit fell 41% to US$99.1m in 2016, as expenses outpaced revenue growth. The carrier faced intense yield pressure on both domestic and international routes, which led net profit to fall 89% to $8.07m. <br/>