Alitalia Bankruptcy?Back to Forum
AnonymousGuest7 Jan 2013
Alitalia is losing around €630,000 per day, and is once again on the verge of bankruptcy.
This morning Bloomberg reported from a source in Rome that AF-KLM are going to buy the other 75% they don’t already own, but a few hours ago at a press conference in Paris, the CEO stated that is not true.
With state aid prohibited by EU law and its only real saviour ruling out a takeover, will Alitalia finally be grounded?7 Jan 2013
Most likely. It is a corporate finance basket case and a terrible, terrible airline. The only person I know who uses it is the Pope, and he kisses the ground every time he disembarks.7 Jan 2013
In an attempt to prove he is still alive, the President of Syria appeared on national TV saying “I have been on the BT forum today and people are saying Alitalia is about to go bust”.
Experts immediately dismissed this, saying it could have been recorded at any time in the last 10 years.7 Jan 2013
Here’s a link to France24 ( a pretty decent news channel ).
Berlusconi is quoted as saying that if Air France take over Alitalia, they will take tourists to France and not Italy. I know he’s bonkers, but THIS bonkers?7 Jan 2013
I agree with you LP….. An Alitalia collapse would just re-enforce the market sentiment that the Italian economy is on its knees…..
I always wonder how badly managed a company (that should start in an advantageous / favourable place) can be to get itself into such a dire place…..Reflects badly on a country where the trains ran on time….8 Jan 2013
@HedgeFund Flyer – great post and brightened up my day.
I hope AZ do prevail, and it seems product wise they are upping their game. I would be keen to try out their new A330 Business and Premium Y – a friend of mine tried the former recently and thought it was the best he had had on a European airline.
I am not sure if the new products are on all the fleet yet, indeed I am not sure how “fresh” their long haul fleet is, but friends flew with them in Y to London the other week and although would have liked more food, were pleased with the offering.
My (limited of late) experiences have generally been good, and for them to go would I think be bad for Italy, so I hope their fortunes can improve.
Maybe Etihad will buy a stake?!8 Jan 2013
I would be very surprised if Alitalia was to get bankrupt before Iberia. They are loosing 630 K€ a day when Iberia is loosing 720 K€ a day, their fleet is one of the newest in Europe, their inflight product is now very good (nothing to do with the former Alitalia).
It is said in France that AF-KLM is to buy part of the remaining shares they don’t already own with the help of Etihad8 Jan 2013
I wonder if any of the people making the blanket judgements that Alitalia is a “terrible, terrible” or “ghastly airline” have recently travelled on them. The management may be shambolic but the hard and soft business class product is superb with brand-new fully-flat seats, award-winning catering and a generally very stylish product, from lounges to uniforms to amenity kits. I also found the cabin crew very pleasant on the three long-hauls that I did with them in 2012. Alitalia’s demise would be a great loss for me.8 Jan 2013
Personally, I thought that Hedgefundflyer and SimonS1’s comments provided some rare (and deserved) amusement value about an airline that has been consistent in only one respect: the buckets full of other people’s cash it has required in order to stay in the air.
The inflight product may have improved considerably in recent years (wouldn’t know myself as I always fly BA or EJ to Italy) but AZ’s cost base when compared to its revenue flow simply does not add up. Once upon a time, national airlines were added to government expenditures along with the costs of the welfare state but no longer. It is clearly time for AZ’s management to deliver the same kind of shut down threat to its staff as has recently been delivered by SK and IB: face up to facts or lose the lot!8 Jan 2013
LuganoPirate – 08/01/2013 06:10 GMT
I’ll be amazed if you are proven wrong.
Flying AZ a few years ago and boarding at FCO, the cushion on my c class seat was really awful, the board on the bottom was broken and there was no support; I called the steward, who took it away and appeared with a replacement a few minutes later.
Very impressed, I commented that it was great to see how quickly AZ ground staff had supplied a replacement; He then looked as me as if I was mad and said he he changed it with an economy seat, as that pax had not paid much for his seat, so could put up with it.
You couldn’t make it up.8 Jan 2013