Alitalia Bankruptcy?Back to Forum
AF. KLM gold a 20% stake in AZ at the moment.
One newspaper reported that they were looking and in advanced talks in Italy at the weekend, but this has been denied by the AF/KLM group several times.
They also indicated they had little equity to make such a move at this stage.
They are just making a good recovery financially, and the share price has doubled in 6 months, with costs reduced, income increased, capacity loads up.
As a shareholder, i feel that this would not go down well, when dividends have not been paid for several years.
Taking on loss making Airlines, would not be a sensible move, unless they asset strip, or gain from AZ ‘s demise.
I see very little for them to gain by taking AZ…
AZ could be re-nationalised.8 Jan 2013
Martin – amazing what you can deliver when you have almost $1m a day to burn through.
I’m sure the Italian tax payers will be pleased you are happy with the service, as will all the other countries that are forever bailing Italy out.8 Jan 2013
Italian taxpayers have nothing to do in this matter. AZ is a privately owned airline.
At least, AZ service is very good. This as been a dramatic change compared to what used to be AZ service before. Not many airlines are able to make such a move and AZ should be congratulated and encouraged instead of being laughed at.
You should give them a try for your next flight and post another post afterwards8 Jan 2013
Time will tell. The markets are saying there are only three outcomes here. i) Renationalisation (taxpayers), ii) Air France/KLM (who claim not to be interested in increasing equity), iii) airline goes bust.
But you are right. I congratulate Alitalia. After all they must be quite tough to be able to withstand losses of almost $1m a day and still be in business.8 Jan 2013
I heard a lot of good news about Alitalia new product and services.
This is an example:
It would be ashamed if Alitalia go bust. I am suspecting AF-KLM and EY would come to the rescue, as I don’t think AF-KLM and DL would let AZ to fall to IAG or LH group. Considering weak Oneworld coverage in EU, AZ would be valuable to their network.
I wonder for those who heavily criticised AZ would say the same thing if IAG were to buy them or if AZ is part of IAG.8 Jan 2013
Vertrek – 08/01/2013 16:53 GMT
Frankly, the issue that gets up the noses of many is not whether AZ is owned by AF/KLM or whether IAG were to take it over (the latter rather unlikely at present) but that this outfit has been able to ride roughshod all over competition and subsidy rules that seemingly apply elsewhere (most definitely to BA when they tried out a series of tie-ups both within Europe – KL – and then across the pond) but not to either the Italians or French. One set of rules for one etc. That is the issue here, not IAG.
Actually, I don’t see what AZ would add to IAG’s European network. Can you enlighten us all?8 Jan 2013
I agree with you. They are really though to be able to still be in business with losses of almost $1m par day. But we should also congratulate IAG for buying an airline which losses are above $1m per day. Mais que donc sont ils aller faire dans cette galère !
As far AZ nationalization is concerned, the markets should know that EU rules have made such an issue totally unusefull and unefficient. Even our French communist government would never nationalize any French company.8 Jan 2013
I’m afraid you make a confusion between ”European network” and ”European cities linked to london with direct flights”.
740 000 000 people live in Europe and 10 000 000 of them live in London.8 Jan 2013
Christophe – I fully agree. I saw that in the first 9 months British Airways made a profit of €286m and Iberia conveniently burnt it all with a loss of €262m. Still at least it meant the shareholders didn’t have to cover a loss.9 Jan 2013
I was referring to Oneworld EU network, not solely IAG. As far as I know BA is already in bed with Meridiana Fly, I am sure Alitalia is a more attractive partner than Meridiana. Add to that the possibility to gain full control of the airline and Italian premium market.
With current AF-KLM Transform 2015 program in place and working well and an additional cost saving are still possible, it shows that AF-KLM has a great potential for making a huge profit under a good management. Perhaps, an addition of AZ to AF-KLM would be beneficial to both party as I am sure this time, under the proper management, AZ can be turned around and brought back to be profitable.
I wonder why none of the AZ management team ever thought of including AZ in Transform 2015 or create a similar procedure for the company? It is obvious the current management is not effective at all.9 Jan 2013