[AnthonyDunn]

For the benefit of UK Isolationist Party members, the European Commission previously acted to prevent any further state bail-outs/hand-outs to Malev (Hungary) and Olympic (Greece). It should now step in to stop what is a transparently obvious back-door, back-hander to keep a dead parrot of an airline squawking for a while longer.

IAG is entirely right to complain in the way it has when it has had to swallow painful restructuring measures and meet all of the costs without recourse to any taxpayer cash – that I am aware of.

[SergeantMajor]

It is unacceptable that Italy is able to bend therules in this way.

Alitalia should be allowed to fail, and be thoroughly restructured, without the burden of historic restrictive working practices.

[BigDog.]

I fully agree with SM, unfortunately for Alitalia I doubt if there will be another egotistical patsy, similar to Walsh, stupid enough to pay way over the odds for a basket case. The Spanish government has made many a faux pas however they certainly duped Walsh. Pity it was BA shareholders who were swindled. IB should have been allowed to fail too.

[MarcusUK]

AF/KLM have written off their share in Alitalia, and been robust in saying they will not assist without major re-structuring. Seems to have insulted the CEO, not very wise.

Seems AF.KLM will not now be there to assist Alitalia, and soon will arrive another crisis and funding need for this ever financially non viable Airline.

http://uk.finance.yahoo.com/news/air-france-klm-writes-off-103204442.html

[Swissdiver]

Board meeting yesterday seems to have confirmed the disagreements between AF/KLM and the other shareholders.
http://www.reuters.com/article/2013/11/13/alitalia-board-idUSL5N0IY3QW20131113

Also the idea to increase the number of long haul flights is quite a challenge in nowadays highly competitive market.

[MarcusUK]

You beat me to posting a similar report!

It seems that Alitalia will not learn its lessons, and it simply needs whole re-structuring, sweep away the current Board and Senior Management.
It appears doomed to fail again, with low cost Airlines on the edge of taking their routes anyhow.

As a KLM/AF shareholder, i do not think they should invest or re-capitalise Alitalia, until our own re-structuring is completed, which will be another 18 months for the 2015 Strategy Plan.

It is best for Alitalia to go now, never having been a viable business.

[MarcusUK]

AF / KLM CEO, has said “No” to the involvement of the group of the re-capitalisation of Alitalia.

http://uk.finance.yahoo.com/news/air-france-klm-says-no-185632689.html

Alitalia had previously stated they would search for another partner, if AF / KLM did not participate.

[Swissdiver]

Good luck to them! The reality will soon strike…

[MartinJ]

Yes, Alitalia are a financial basket case, but their long-haul business product is one of the best I’ve experienced. It would be a shame to see it go.

[Swissdiver]

Possibly, Martin. At the end of the day though, what counts is not to have the best product but to be able to sell it profitably!

[MarcusUK]

There appears to be more of a concern of having a “National” Italian Airline, than a viable business from The Alitalia Board.
The sheer number and complexity of the shareholders listed, are in themselves a recipe for chaos.
Even a Middle East Airline could not come in and take them over, without massive re-structuring, and becoming the major shareholder.

The slots are probably worth more than the Company, and would end up like BMI, BA stripping the assets, slots, and taking on their routes themselves. There would be no gap if Alitalia suddenly was no more, as the Low Cost carriers are on the sidelines, and already have taken much of their business.

Most likely the Fuel suppliers will pull the plug, and then it will take its due course. Pumping more money into Alitalia, is completely pointless, and is a very poor Business move.

[londonlad]

After Air France refusing to inject any money last week, now the job cuts come…

http://www.reuters.com/article/2013/11/18/us-alitalia-idUSBRE9AH0WG20131118

[transtraxman]

Etihad and Aeroflot were also named as possible white knights.
However, Aeroflot has put a stop to that rumour.
“Aeroflot Rules Out Buying Or Financing Alitalia”.

http://news.airwise.com/story/view/1384517907.html

(published by Airwise/Reuters 15-11-13)

Is anybody else prepared to lose money? or will Air France/KLM get its way?

[Edski777]

This morning I read an article on a Dutch website that Alitalia will shed about 2500 jobs. I believe that once this has taken place Alitalia will be in better shape and much more interesting for investors like the Skyteam partners and Etihad.
Before that no one is likely to step in.

[Swissdiver]

Yes, Edski, if it was for real. In the version of the news I read, Alitalia said they would achieve this without any laying off…

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