Romme: As Italian national carrier Alitalia announced its new plan for returning to profitability by 2017, Etihad Aviation Group President and CEO James Hogan warned that the company could no longer be run as a public utility.

Hogan was speaking at a press conference in Rome on Tuesday to announce the troubled airline’s new restructuring strategy, which was approved at the first meeting of Alitalia’s new board on Monday.

Alitalia President Luca di Montezemolo sought to emphasise that the carrier remains an Italian company with majority Italian ownership, despite Etihad’s 49 per cent share of the firm, the result of a €560 million (Dh2.4 billion) investment last year.

That deal helped save the Italian carrier from bankruptcy. The firm’s debts stood at around €1 billion by late 2013, according to Reuters.

Hogan told the conference, “We need to see a return on our investment. We work alongside, we provide support but the company is in the hands of the Italian management team.”

He added: “We cannot sit in Abu Dhabi and tell [Alitalia CEO] Silvano Cassano how to run an airline in Italy, and we wouldn’t try.”

But both Alitalia and Etihad would benefit from economies of scale, he said. Together, the two airlines will operate a combined fleet of more than 250 aircraft, with hubs in Abu Dhabi, Rome and Berlin. Alitalia will also be increasing investment in Milan’s two airports, aiming at business traffic and freight.

Di Montezemolo outlined four key strategies of the restructuring plan: quality staff, strengthening brand image, improved customer service and developing the right routes.

“We must remember that Alitalia now is still losing a huge amount of money every day,” di Montezemolo said. “We have to be down to earth. This is a challenging, demanding journey.”

CEO Silvano Cassano, said the coming year would focus on reducing costs and tackling the company’s debt, with the aim of breaking even in 2016 and turning an operating profit in 2017. He announced six new long haul routes to the Americas and the East, including flights to San Francisco, Mexico City and Santiago, and increased services on some established routes.

“We had a strategic deficiency, the East and Asia, and thanks to Etihad we will be able to plug that gap,” he said.

“We should not forget that this powerful brand was damaged in the past,” he added. “We are working hard to build a new Alitalia.”