More turmoil as Alitalia chief executive quits suddenly

Alitalia chief executive Silvano Cassano has stepped down abruptly for "personal reasons", ushering in fresh uncertainty at Italy's flagship airline after last year's rescue by Etihad. Luca di Montezemolo is to act as chairman until a permanent successor is found. The loss of Mr Cassano – after just one year in the job – marks the latest chapter in the tumultuous corporate history of Alitalia, which has not reported a full-year profit since 2002.

Last year’s investment by Etihad – which valued the Italian carrier at €1.7 billion – initially generated hopes of a turnaround and a return to earnings by 2017. Mr Cassano’s departure, however, will raise fears that the transition is not going as smoothly as planned when Etihad took its 49 per cent stake, and the target for a return to profitability might slip.

In January, James Hogan, Etihad's chief executive, warned that this was "the last chance" to save Alitalia, which required a "radical change in its way of working to lower costs and boost productivity".

Following Mr Cassano’s exit, Etihad said on Friday that it was pleased with the first stages of the business transformation. “We now look forward to the next steps in the development of Alitalia under new leadership.” – (Copyright The Financial Times Limited 2015)