Alitalia privatisation on hold

THE Italian government does not foresee the full privatisation of Alitalia under its new restructuring plans for the state-controlled airline, Prime Minister Silvio Berlusconi said on Wednesday. According to Airwise News, Berlusconi said the government, which owns 62% of Alitalia, was looking at the possibility of private investors taking stakes. Alitalia proposals to cut costs by slashing jobs have met fierce opposition from unions, and the government has drawn up its own recovery plan, which is due to be presented at a cabinet meeting today (Friday). Alitalia expects a 2003 operating loss of more than €400m (around R3,3bn). Its original three-year plan aimed to bring it back into profit by 2005 by reducing the workforce by some 12%. (Miguel de Sousa)