Alitalia Creates Separate Engineering & Maintenance Business Unit

As part of an April reorganization, Alitalia Group created a separate business unit for its Engineering & Maintenance Division that comprises the airline's Rome-Fiumicino Airport-based Alitalia Technical Operations unit as well as Naples-based Atitech.

The division has seven hangars, 40 component shops, engine test cells and a training center at Fiumicino

The company's plan for the new division is to grow third-party business from its current 30% level to 50% by 2006, while still handling all maintenance for Alitalia's fleet of some 145 aircraft comprising MD-80s, A320s, B767s and MD-11s. Alitalia is phasing out its Boeing 747 fleet in favor of the 777.

Alitalia will absorb the space created on its GE CF6 engine line by the phase-out of the 747 by creating a new CFMI CFM56 line. It will farm out maintenance of the GE90 engines that will power its 777s. By rationalizing around the CF6 and CFM56, Alitalia aims to reduce its CF6 turntime by 50 percent.

To help the new business unit grow, Alitalia has invested $25 million in a new engine shop and $7.5 million in refurbishments of its component shop.