Alitalia to shed 2,500 jobs

September 25, 2001 Posted: 1155 GMT

LONDON (CNN) -- Italian national airline Alitalia on Tuesday announced plans to shed 2,500 jobs, sell planes and cut routes in the wake of terror attacks.

The airlines industry globally has axed more than 100,000 jobs in the wake of the September 11 terrorist attacks on New York and Washington as travelers ditch plans to fly on fears of further hijackings.

The loss making airline plans to sell at least 12 aircraft including MD-80s, MD-11s and Boeing 747s and lease other planes while also freezing new plane orders. Deutsche Lufthansa, Europe's second-largest airline, last week outlined plans to cancel orders as the economic climate deteriorated.

British Airways, Europe's biggest airline, last week detailed plans to cut 5,200 jobs and Swissair, the fifth-biggest, is to shed 3,000 jobs immediately with more to follow.  

The Rome-based airline, which is 53 percent owned by the Italian government, also said it would cut international routes to Hong Kong, Beijing and San Francisco.

It is hoped that the measure will cut first half losses to about 400 billion lire ($189 million), from the previous forecast loss of 700 billion lire for the October 2001 to March 2002 period.

Alitalia shares were suspended for gains exceeding the Milan bourse's 10 percent each-way trading band, the bourse said. The shares were suspended just after midday after rising 11.03 percent to 0.734, according to Reuters.

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