Alitalia Bankruptcy?
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at 19:48 by Tom Otley.
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SergeantMajorParticipant…and will turn it around to be a profitable entity, using the same team and skills he deployed to turnaround BA, further increasing IAG’s profit-making potential.
Your grudge against Walsh really must be very deep and personal.
10 Feb 2014
at 13:37
transtraxmanParticipantIt seems that Alitalia and Etihad are inching towards an agreement.
“Etihad Could Invest Up To EUR€1.25 Bln In Alitalia” (Airwise/Reuters 11-6-14)
€560m to invest in new shares and “the rest would be invested in aircraft, design and training,”…..
…”possible lay-offs of 2,251 Alitalia staff as a condition for Etihad’s investment”.
The two sides hope to conclude the deal 15th July.http://news.airwise.com/story/view/1402535458.html
In another area this article appeared in Air Transport News 11.6.14.
“ALITALIA INCREASES INTERNATIONAL AND DOMESTIC FLIGHTS AND OFFERS A NEW SERVICE ON THE ROME-TEL AVIV ROUTE”
This is a case of a bankrupt airline expanding routes during July and August and even into September. It is rather surprising when new owners might not agree.However, the not so surprising point is the paragraph I quote in full.
“Alitalia has obtained the rights to operate for three years from 1 July 2014 to 30 June 2017, under the Territorial Continuity regime, the routes Lampedusa-Palermo and vv. (4 daily connections), Lampedusa-Catania and vv. (1 daily flight), Pantelleria-Palermo and vv. (3 daily flights), and Pantelleria-Trapani and vv. (2 flights per day). With these flights, Alitalia’s aim is to safeguard and facilitate the mobility of Lampedusa and Pantelleria’s citizens travelling to Sicily. The same will naturally apply to the rest of Italy and all international and intercontinental destinations of the Alitalia network.
The routes between Lampedusa and Pantelleria and the other Sicilian cities will be operated by Mistral Air with its ATR -72 turboprop 68 seats aircraft, with its own pilots and flight attendants.
In Summer, Alitalia also offers direct flights from the islands of Lampedusa and Pantelleria to Rome Fiumicino and Milan Linate too.”Under the Territorial Continuity regime this probably is all above board and legal. However, to my eyes there is a suspicion that it is an excuse for the government to susidise the airline.
12 Jun 2014
at 08:51
Ab0dacheParticipantFor the ones interested : a nice review of the Pantelleria-Palermo service is reported here:
http://flight-report.com/fr/report-6745.html
Ms Carole Bouquet produces there an amazing rosé wine. The other wines produced there are also very good.
12 Jun 2014
at 13:43
LuganoPirateParticipantNice overview Transtraxman though I still think this will end in tears. Just wait till they actually start firing people. The government will cave in and look for ways to stop it, despite agreements in place. Once Etihad has stumped up the readies, Alitalia and the government know they have ET by the proverbials!
Having been on both sides of takeovers, I can understand Alitalia continuing to run the business as commercially as they are able and opening new routes, as nothing is yet signed. Unless ET specifically excluded this, which I doubt, then AZ will continue operations and expansion plans.
12 Jun 2014
at 18:18
transtraxmanParticipantI can understand a certain compliance of Etihad with Alitalia in their plans otherwise Etihad would just turn its back on the Italians and tell them to get bending spaghettis.
Therefore, I think that Etihad will tie this deal up tight so it does not get burnt, at least not too much.
12 Jun 2014
at 22:09
canuckladParticipantI’m assuming transtraxman that your meaning that if Etihad leave the Italians to bend their spaghetti it’ll be because they’ll be in so much hot water that bending spaghetti would be the only obvious ingredient when cooking their last meal before the axe man appears
12 Jun 2014
at 23:20
LuganoPirateParticipantYes, tie them up, get it all in writing, pump in millions – then try and enforce the contract through the Italian courts! It’ll end in tears!
12 Jun 2014
at 23:39
AnthonyDunnParticipantI’m just wondering whether Silvio Berlusconi had to throw in a few bunga-bunga parties with “added extras” to seal the deal… Just what “hidden value” in Alitalia is there that Mr Hogan and his team have identified that others have failed to unearth between successive rounds of “investment”, err, bailouts?
8 Aug 2014
at 16:49
LetsFlyNowParticipantI too fail to see the big picture here. I mean, even Air Berlin after investments of over €800mil is still making losses and the future ain’t looking so bright there.
Let’s wait and see if Alitalia will actually survive.
Edited: I wonder if the italian courts will now manage to stop EK flying MXP – JFK. I wouldn’t be surprised if there’s a clause somewhere there as part of the deal. Though i’m not sure if EK & Etihad ‘hate each other’.
8 Aug 2014
at 17:25
BusinessBabbleParticipantThe 5 pairs of slots at LHR and 75% share of Alitalia frequent flyer scheme is what underwrites the deal, similar to Air Berlin deal.
8 Aug 2014
at 23:46
LuganoPirateParticipantI can see the big picture here. Makes good sense and takes advantage of Alitalia’s route network within the EU which can be expanded ad infinitum. This would for example give ET traffic from every German airport via Italy with no doubt competitive fares to entice travellers into making that extra stop.
However, this is Italy – and it will still all end in tears!
9 Aug 2014
at 04:29
MarcusGBParticipantEtihad are a very wise investor, and slowly are finding a different approach into Europe through Co-operations and equity, And Equity not just in shares, but of FFP;s interestingly also, and property in AUH.
They have now a strong link directly into Italy, a domestic network to benefit and feed in and out, and an opportunity for long haul East feeding AUH,
The Italians will be very happy with the standards of Etihad’s cabins and services in flight, or on the ground.
Share wise if one other shareholder goes with them, they get the majority, Another phase in the network of investing as opposed to mere Alliances for this World class Airline.
They certainly will return it to profit one way or another, with a stronger domestic network, and enhanced long haul.
I am sure that Alitalia will be seen locally as something to support.9 Aug 2014
at 10:06
MarcusGBParticipantEtihad have bought slots at LHR, a large % of the Alitalia FFP, and 49% of Alitalia, with over Euros 1700 Million, including from existing investors.
The plans highlighted for restructuring for Alitalia in every aspect, posted on the entrance page to the Etihad Airways website:
Etihad to not make rash decisions, even the slots and FFP themselves give them greater assets with immediate effect, far more than their overall payment for the Airline.
Clever Etihad
Watch that space.21 Aug 2014
at 07:30 -
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