Alitalia may slash 2,000 jobs as its struggles persist

Alitalia and its shareholders are to present its new business plan to the Italian government later today, top investor Etihad Airways said.

Italy's loss-making national carrier on December 22 approved a short-term financing deal and a new strategy, including job cuts, that allowed it to start negotiations with stakeholders.

Alitalia and its investors are meeting with Italian government ministers to explain the plan, Etihad said in an emailed statement to Reuters.

The Abu Dhabi airline will be represented by its top executive James Hogan, who is also Vice Chairman of Alitalia.

Led by Hogan, state-owned Etihad bought a 49 percent stake in Alitalia in 2014 as part of a 1.76 billion euro rescue plan for the loss-making airline.

Etihad had pledged to return it to profit by 2017 by slashing costs, turning Rome into an intercontinental hub and adding more lucrative long-haul connections.

But two years later, Alitalia is losing at least half a million euros a day and may remain unprofitable for another two to three years, sources have said.

"It is vitally important that the airline's workforce and major stakeholders, such as corporate partners, suppliers and unions, embrace and accept...