VOLARE in trouble?
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MOL not wasting anytime!!!
News Release
23.11.04
RYANAIR TO UNVEIL PLANS FOR ITALIAN EXPANSION
IN THE WAKE OF VOLARE’S COLLAPSE
Ryanair, Europe’s No.1 low fares airline, today ( 23rd Nov 04) announced that Ryanair’s Deputy CEO, Michael Cawley, will host a press conference tomorrow, Wednesday 24th November 04 in Milan at 12.00 (cet) to unveil Ryanair’s expansion plans for Italy in the wake of the collapse of Volare.
Press conference details:
Host: Michael Cawley, Deputy Chief Executive Officer, Ryanair
Location: Offices of CBO – Communications by Objectives
7 Via P. Paleocapa – 20121 Milan.
Time: 12.00 (cet)
News Release
23.11.04
RYANAIR TO UNVEIL PLANS FOR ITALIAN EXPANSION
IN THE WAKE OF VOLARE’S COLLAPSE
Ryanair, Europe’s No.1 low fares airline, today ( 23rd Nov 04) announced that Ryanair’s Deputy CEO, Michael Cawley, will host a press conference tomorrow, Wednesday 24th November 04 in Milan at 12.00 (cet) to unveil Ryanair’s expansion plans for Italy in the wake of the collapse of Volare.
Press conference details:
Host: Michael Cawley, Deputy Chief Executive Officer, Ryanair
Location: Offices of CBO – Communications by Objectives
7 Via P. Paleocapa – 20121 Milan.
Time: 12.00 (cet)
Why can't the Italian government understand a basic fact of business life.
Businesses that lose money go bust!!! Successful businesses survive!!
When they (and some other EU governments) eventually understand that, Euroland may start making some economic headway.
Businesses that lose money go bust!!! Successful businesses survive!!
When they (and some other EU governments) eventually understand that, Euroland may start making some economic headway.
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The business was not losing money.
The company's business plan was good, but when you have the people running it pocket money and leave big holes and then go start another company, of course when the new owners come in and discover there are holes,..........no one wants to fill them.
A judge has started his investigation, and we all hope Soddu will meet his fate, however, I believe he will not be the only one and we are yet to learn many new "crazy connections".
The company's business plan was good, but when you have the people running it pocket money and leave big holes and then go start another company, of course when the new owners come in and discover there are holes,..........no one wants to fill them.
A judge has started his investigation, and we all hope Soddu will meet his fate, however, I believe he will not be the only one and we are yet to learn many new "crazy connections".
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sorry Micia ...
actually it was losing a lot of money, and then as cherries on the cake they had an eager mgmt ...
Sorry, but this is the gloomy truth
The business was not losing money
Sorry, but this is the gloomy truth
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no prob. iceman51, but.....................
I was repeating a direct quote of the welfare minister Maroni, that I read from Ansa.
I don't believe the current owners are without guilt, but odd how bad things seem to follow in Soddu's wake.
I am glad the dirty underwear is now being looked at and soon the judge can decide the real truth.
I hope it will all happen fast so the employees can be paid the two months they have missed so far, and maybe at least pay them something, if not, all due.
I was repeating a direct quote of the welfare minister Maroni, that I read from Ansa.
I don't believe the current owners are without guilt, but odd how bad things seem to follow in Soddu's wake.
I am glad the dirty underwear is now being looked at and soon the judge can decide the real truth.
I hope it will all happen fast so the employees can be paid the two months they have missed so far, and maybe at least pay them something, if not, all due.
Trent900 - THINK BIG
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Volare Update
Good evening all,
Not to comment - but merely to add the latest on the apparent crisis at Volare.
Kind regards,
EG
REUTERS –“23Nov2004 RTRS-UPDATE 3-Embezzlement prosecutors to question Volare bosses
MILAN, Nov 23 (Reuters) - Prosecutors probing possible false accounting at Italy's Volare are set to question the grounded airline's managers, including those who left this year to set up rival Myair.com, the chief investigating magistrate said. Volare, which runs Italy's best known no-frills airline, is seeking insolvency status, having last week suspended all flights in a move that shocked its 1,400 employees and left thousands of passengers stranded.
"Over the next few days we'll question all the managers, executives, everyone who formed part of management during the period in question," said Antonio Pizzi, chief investigating magistrate in Busto Arsizio, outside Milan. He told Reuters on Tuesday he had received a report by forensic accountants KPMG, part of a probe into false accounting and embezzlement at Italy's third-largest airline. "We are confiscating all the relevant documents, the accounts of the last 10 years, the company's books, administrative records," he added.
When asked whether the investigation also concerned airline Myair.com, due to start flights in December, Pizzi said: "Not for now. We'll see, we'll wait for what emerges from this probe. We will investigate all possible avenues." Volare, famous for its navy blue planes, has long been struggling under heavy losses and debt, and last week its planes were grounded altogether. Sources close to Volare said it suspended the flights after losing its insurer.
On Monday, financial police raided its offices as part of an investigation into its accounts begun the previous week.
CASH ALARM
Auditors Deloitte & Touche said on Tuesday they had warned the firm of its financial problems as early as 2002. Deloitte audited Volare Group's consolidated accounts in 2002 and 2003.
"In both cases, the audit showed that Volare Group was in a problematic financial situation and that continuing the company's activity and recovering its asset value depended on finding new financial means to implement the board's strategy," Deloitte said in a statement.
Italy's government is now likely to place Volare under extraordinary administration, though the law will need to be adjusted. This form of protection from creditors, used to rescue the operations of insolvent food group Parmalat, allows day-to-day business to continue.
But it is only applicable to companies with at least one billion euros in debt. Volare is estimated to have 200-300 million euros worth of debt. Government sources said ministers would discuss the law at their next meeting, a date for which has not yet been fixed.
Naming an administrator could pave the way for flights to resume at the airline. National civil aviation body Enac, which has criticised Volare for failing to keep passengers informed, said it would decide by Wednesday whether or not to revoke the airline's operating licence altogether.
But Volare's managers said they needed more time. "We are in a liquidity crisis. We are asking for the licence not to be suspended for 2-3 months, while we wait for the situation to unblock," said technical operator Franco Magni. Vice-Chairman Roberto Naldi said the company had "very little" cash but was technically able to resume flights once placed under administration.
Volare, whose brands include the low-cost Volareweb.com and AirEurope, operates international and domestic scheduled flights, as well as chartered flights.
Low-cost carrier Ryanair <RYA.L> issued a statement saying it would present plans on Wednesday for expansion in Italy in the wake of Volare's move to suspend flights.”
Source: REUTERS
Not to comment - but merely to add the latest on the apparent crisis at Volare.
Kind regards,
EG
REUTERS –“23Nov2004 RTRS-UPDATE 3-Embezzlement prosecutors to question Volare bosses
MILAN, Nov 23 (Reuters) - Prosecutors probing possible false accounting at Italy's Volare are set to question the grounded airline's managers, including those who left this year to set up rival Myair.com, the chief investigating magistrate said. Volare, which runs Italy's best known no-frills airline, is seeking insolvency status, having last week suspended all flights in a move that shocked its 1,400 employees and left thousands of passengers stranded.
"Over the next few days we'll question all the managers, executives, everyone who formed part of management during the period in question," said Antonio Pizzi, chief investigating magistrate in Busto Arsizio, outside Milan. He told Reuters on Tuesday he had received a report by forensic accountants KPMG, part of a probe into false accounting and embezzlement at Italy's third-largest airline. "We are confiscating all the relevant documents, the accounts of the last 10 years, the company's books, administrative records," he added.
When asked whether the investigation also concerned airline Myair.com, due to start flights in December, Pizzi said: "Not for now. We'll see, we'll wait for what emerges from this probe. We will investigate all possible avenues." Volare, famous for its navy blue planes, has long been struggling under heavy losses and debt, and last week its planes were grounded altogether. Sources close to Volare said it suspended the flights after losing its insurer.
On Monday, financial police raided its offices as part of an investigation into its accounts begun the previous week.
CASH ALARM
Auditors Deloitte & Touche said on Tuesday they had warned the firm of its financial problems as early as 2002. Deloitte audited Volare Group's consolidated accounts in 2002 and 2003.
"In both cases, the audit showed that Volare Group was in a problematic financial situation and that continuing the company's activity and recovering its asset value depended on finding new financial means to implement the board's strategy," Deloitte said in a statement.
Italy's government is now likely to place Volare under extraordinary administration, though the law will need to be adjusted. This form of protection from creditors, used to rescue the operations of insolvent food group Parmalat, allows day-to-day business to continue.
But it is only applicable to companies with at least one billion euros in debt. Volare is estimated to have 200-300 million euros worth of debt. Government sources said ministers would discuss the law at their next meeting, a date for which has not yet been fixed.
Naming an administrator could pave the way for flights to resume at the airline. National civil aviation body Enac, which has criticised Volare for failing to keep passengers informed, said it would decide by Wednesday whether or not to revoke the airline's operating licence altogether.
But Volare's managers said they needed more time. "We are in a liquidity crisis. We are asking for the licence not to be suspended for 2-3 months, while we wait for the situation to unblock," said technical operator Franco Magni. Vice-Chairman Roberto Naldi said the company had "very little" cash but was technically able to resume flights once placed under administration.
Volare, whose brands include the low-cost Volareweb.com and AirEurope, operates international and domestic scheduled flights, as well as chartered flights.
Low-cost carrier Ryanair <RYA.L> issued a statement saying it would present plans on Wednesday for expansion in Italy in the wake of Volare's move to suspend flights.”
Source: REUTERS
and the MOL response:
RYANAIR TO EXPAND ROUTES IN ITALY
AND OFFERS FREE FLIGHTS TO STRANDED VOLARE PASSENGERS
Ryanair, Europe’s No.1 low fares airline today (24th Nov 2004) announced expansion plans in the Italian market to assist the many hundreds of thousands of passengers disrupted as a result of the collapse of Volare on Friday evening last.
Ryanair’s Deputy Chief Executive, Michael Cawley unveiled these plans at a press conference in Milan today which comprise:
1. Ryanair announced a new twice daily service from Paris (Beauvais) to Venice (Treviso) which is Ryanair’s 65th international route to and from Italy and means that Ryanair now flies on nine of the eleven international routes previously flown by Volare from Italy to other EU destinations. Ryanair is operating most of these routes with greater frequency and lower fares than those sold by Volare.
Volare Routes Ryanair Routes
Milan - Barcelona Milan (Bergamo)-Barcelona (Girona)
Milan - Paris Milan (Bergamo)-Paris (Beauvais)
Milan - Prague No Service
Milan - Valencia Milan (Bergamo)-Valencia
Rome - Barcelona Rome (Ciampino)-Barcelona (Girona)
Rome - Paris Rome (Ciampino)-Paris (Beauvais)
Rome - Valencia Rome (Ciampino)-Valencia
Venice - Barcelona Venice (Treviso)-Barcelona (Girona)
Venice - Madrid No Service
Venice - Paris Venice (Treviso)-Paris (Beauvais)
Bologna - Paris Venice (Treviso)-Paris (Beauvais)
Ryanair has undertaken to offer free flights* to all passengers, booked to travel Volare, on any one of these routes, during the period from 1st December to 17th March next (excluding the peak Christmas period of 22nd Dec to 4th Jan - when many of Ryanair’s flights are already sold out). Stranded Volare passengers can make a booking on these routes, from today (24th Nov 04) until midnight 2nd Dec 04, subject to availability by accessing Ryanair’s website at www.ryanair.com, and entering a member mode by keying in their Volare web booking confirmation. Passengers will be offered a fare of €0 and will only be obliged to pay Government taxes and airport charges for each of the relevant routes. There are a total of 400,000 seats available on these routes, and all bookings of these free flights will be on a first come first served basis and are subject to seat availability.
*Free flight = € zero fare but the passenger pays any relevant Government taxes and airport charges.
3. Ryanair has invited all of the Italian airports affected by the collapse of Volare to meetings in Milan on Wednesday and Thursday of this week to discuss the possibility of Ryanair offering low fare domestic flights within Italy on those routes that were previously operated by Volare. Ryanair has undertaken that any passengers who have lost out as a result of the Volare collapse on domestic routes would be offered a similar period of free fares on any domestic routes subsequently launched by Ryanair in Italy.
Announcing details of this rescue package for stranded Volare passengers in Milan today, Ryanair’s Deputy Chief Executive, Michael Cawley said:
“Even before the collapse of Volare, Ryanair was already Italy’s second largest and lowest fares airline. Our comprehensive network of international routes to and from Italy with the addition of this new Venice-Paris service means that we can offer all international passengers stranded by Volare a flight on a similar international route. Our offer of free flights (subject only to Government taxes and airport charges) will mean that these passengers will have the opportunity of travelling on their chosen route without losing the vast majority of the air fare paid to Volare, and we look forward to reuniting friends and families that may have been stranded by the unfortunate but inevitable demise of Volare”.
“Clearly a lot of Italian airports have lost significant traffic volumes as a result of Volare’s collapse and we have invited all of these airports to meetings in Milan this week to see if we can help them to launch low fare domestic and international routes, to make up for the traffic they have lost as a result of Volare’s collapse. Ryanair already flies to almost all of the airports in Italy previously served by Volare and we expect to announce further route expansion to and from these airports in the not too distant future subject to the successful conclusion of satisfactory agreements with these airports”
“The collapse of Volare last week is the second significant collapse (V-Bird was the first) in the European low fares sector this Winter. Ryanair was the first to predict that there would be a bloodbath this Winter which would result in the collapse of loss making low fare airlines. With intense competition all over Europe and high oil prices, only the strongest low fares airlines will survive Volare will not be the last. Many other airlines talk about low fares, but none can match Ryanair’s low fares, our punctuality or our customer service. We have enjoyed enormous growth in the Italian market over the past three years and we expect that Ryanair’s pro-passenger response to the collapse of Volare will enable us to continue to grow and expand in the Italian market”.
RYANAIR TO EXPAND ROUTES IN ITALY
AND OFFERS FREE FLIGHTS TO STRANDED VOLARE PASSENGERS
Ryanair, Europe’s No.1 low fares airline today (24th Nov 2004) announced expansion plans in the Italian market to assist the many hundreds of thousands of passengers disrupted as a result of the collapse of Volare on Friday evening last.
Ryanair’s Deputy Chief Executive, Michael Cawley unveiled these plans at a press conference in Milan today which comprise:
1. Ryanair announced a new twice daily service from Paris (Beauvais) to Venice (Treviso) which is Ryanair’s 65th international route to and from Italy and means that Ryanair now flies on nine of the eleven international routes previously flown by Volare from Italy to other EU destinations. Ryanair is operating most of these routes with greater frequency and lower fares than those sold by Volare.
Volare Routes Ryanair Routes
Milan - Barcelona Milan (Bergamo)-Barcelona (Girona)
Milan - Paris Milan (Bergamo)-Paris (Beauvais)
Milan - Prague No Service
Milan - Valencia Milan (Bergamo)-Valencia
Rome - Barcelona Rome (Ciampino)-Barcelona (Girona)
Rome - Paris Rome (Ciampino)-Paris (Beauvais)
Rome - Valencia Rome (Ciampino)-Valencia
Venice - Barcelona Venice (Treviso)-Barcelona (Girona)
Venice - Madrid No Service
Venice - Paris Venice (Treviso)-Paris (Beauvais)
Bologna - Paris Venice (Treviso)-Paris (Beauvais)
Ryanair has undertaken to offer free flights* to all passengers, booked to travel Volare, on any one of these routes, during the period from 1st December to 17th March next (excluding the peak Christmas period of 22nd Dec to 4th Jan - when many of Ryanair’s flights are already sold out). Stranded Volare passengers can make a booking on these routes, from today (24th Nov 04) until midnight 2nd Dec 04, subject to availability by accessing Ryanair’s website at www.ryanair.com, and entering a member mode by keying in their Volare web booking confirmation. Passengers will be offered a fare of €0 and will only be obliged to pay Government taxes and airport charges for each of the relevant routes. There are a total of 400,000 seats available on these routes, and all bookings of these free flights will be on a first come first served basis and are subject to seat availability.
*Free flight = € zero fare but the passenger pays any relevant Government taxes and airport charges.
3. Ryanair has invited all of the Italian airports affected by the collapse of Volare to meetings in Milan on Wednesday and Thursday of this week to discuss the possibility of Ryanair offering low fare domestic flights within Italy on those routes that were previously operated by Volare. Ryanair has undertaken that any passengers who have lost out as a result of the Volare collapse on domestic routes would be offered a similar period of free fares on any domestic routes subsequently launched by Ryanair in Italy.
Announcing details of this rescue package for stranded Volare passengers in Milan today, Ryanair’s Deputy Chief Executive, Michael Cawley said:
“Even before the collapse of Volare, Ryanair was already Italy’s second largest and lowest fares airline. Our comprehensive network of international routes to and from Italy with the addition of this new Venice-Paris service means that we can offer all international passengers stranded by Volare a flight on a similar international route. Our offer of free flights (subject only to Government taxes and airport charges) will mean that these passengers will have the opportunity of travelling on their chosen route without losing the vast majority of the air fare paid to Volare, and we look forward to reuniting friends and families that may have been stranded by the unfortunate but inevitable demise of Volare”.
“Clearly a lot of Italian airports have lost significant traffic volumes as a result of Volare’s collapse and we have invited all of these airports to meetings in Milan this week to see if we can help them to launch low fare domestic and international routes, to make up for the traffic they have lost as a result of Volare’s collapse. Ryanair already flies to almost all of the airports in Italy previously served by Volare and we expect to announce further route expansion to and from these airports in the not too distant future subject to the successful conclusion of satisfactory agreements with these airports”
“The collapse of Volare last week is the second significant collapse (V-Bird was the first) in the European low fares sector this Winter. Ryanair was the first to predict that there would be a bloodbath this Winter which would result in the collapse of loss making low fare airlines. With intense competition all over Europe and high oil prices, only the strongest low fares airlines will survive Volare will not be the last. Many other airlines talk about low fares, but none can match Ryanair’s low fares, our punctuality or our customer service. We have enjoyed enormous growth in the Italian market over the past three years and we expect that Ryanair’s pro-passenger response to the collapse of Volare will enable us to continue to grow and expand in the Italian market”.
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VOLARE almost dead
Today the Italian authorities have suspended Volare's and Air Europe's AOC's for 1 month which they say is the time needed to evaluate if the 2 parent companies can continue operating at all being their financial situation close to deadly critical.
good luck to all of you guys...just couriuos to see if you are gonna get any support from AZ guys who were in an even worst situation a couple of months ago and who were magically saved.
good luck to all of you guys...just couriuos to see if you are gonna get any support from AZ guys who were in an even worst situation a couple of months ago and who were magically saved.
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And the appropriate place for !(do not name names) ? Alcatraz maybe! Together with the good old boys in ENAC down in Rome who sanction positioning as pax for an undetermined amount of time, taking a MAXIMUM of 8 hours rest, then flying a possible 24 hour duty period in command.. without even that rest...if the company decides that it is an emergency!!!!!!
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Soddu only?
Come on people! I hear so many accusations made to Soddu.
He was the brain and he was managing everything. His staff? the same. They all knew what was going on and played their cards quite well. Managers, after all...
How about the pilots? How about the pilots who knew and let it happen? How about the people who were sponsoring and leading the Pilot Association (ANVA)? How about the pressure they were putting on newcomers to join the internal pilots association and the blackmailing who was about to join the national pilots unions? ANVA was created and operated by the managment to get anything approved anytime. By keeping the national unions out of the way they were able to wash the dirty clothes without anyone from outside seeing the stains... All knew about it and all agreed to keep it that way. And as far as we know, no one does anything for nothing... They all had their chairs, thair titles, their positions, doesn't really matter if they were good enough for it...
Now the bubble burst! Soddu and the close friends go on as planned long time ago with Myair, the whole theam, the people who know how dirty everything is, the people who know how dirty everything has always been (since the beginning, the Alpi Eagles beginning...) but everyone happy to be making a few more Euros stubbing colleagues in the back.
Now what happens with Volare people left without a leader? Now that they realized that Soddu had only been using them and never really cared. Now that the ship is sinking?
Oh my dear! They all ran to sign up with the National unions, the same ones of the Alitalia people... But wasn't everyone in Volare saying that the unions were so bad and they were driving AZ to bankruptcy? Weren't they even thinking at one stage that Volare would have bought AZ eventually to become the #1 airline in Italy? It is very very sad... It is so sad to see how people can change their flag so quickly. It is so sad to see people who contributed to this failure on TV asking for govermnet help, they are all so united now! How sweet! Dignity is unknown word in someone's vocabulary.
There are, no doubt, so many good people in Volare, but sorry, no mercy for the other ones. Shame on you!
He was the brain and he was managing everything. His staff? the same. They all knew what was going on and played their cards quite well. Managers, after all...
How about the pilots? How about the pilots who knew and let it happen? How about the people who were sponsoring and leading the Pilot Association (ANVA)? How about the pressure they were putting on newcomers to join the internal pilots association and the blackmailing who was about to join the national pilots unions? ANVA was created and operated by the managment to get anything approved anytime. By keeping the national unions out of the way they were able to wash the dirty clothes without anyone from outside seeing the stains... All knew about it and all agreed to keep it that way. And as far as we know, no one does anything for nothing... They all had their chairs, thair titles, their positions, doesn't really matter if they were good enough for it...
Now the bubble burst! Soddu and the close friends go on as planned long time ago with Myair, the whole theam, the people who know how dirty everything is, the people who know how dirty everything has always been (since the beginning, the Alpi Eagles beginning...) but everyone happy to be making a few more Euros stubbing colleagues in the back.
Now what happens with Volare people left without a leader? Now that they realized that Soddu had only been using them and never really cared. Now that the ship is sinking?
Oh my dear! They all ran to sign up with the National unions, the same ones of the Alitalia people... But wasn't everyone in Volare saying that the unions were so bad and they were driving AZ to bankruptcy? Weren't they even thinking at one stage that Volare would have bought AZ eventually to become the #1 airline in Italy? It is very very sad... It is so sad to see how people can change their flag so quickly. It is so sad to see people who contributed to this failure on TV asking for govermnet help, they are all so united now! How sweet! Dignity is unknown word in someone's vocabulary.
There are, no doubt, so many good people in Volare, but sorry, no mercy for the other ones. Shame on you!
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Volare seeks shelter from creditors
MILAN
Volare Group, an Italian low-cost airline that has not flown since suspending flights late last week, declared insolvency on Tuesday, opening the way for government intervention.
Prime Minister Silvio Berlusconi's cabinet is expected to name an extraordinary commissioner for Volare when it meets on Thursday or Friday. The commissioner can be named only after a decree changes legislation introduced less than a year ago to sort out the chaos left by the bankruptcy of the dairy and food giant Parmalat. That legislation, which governs appointments of extraordinary commissioners, currently applies only to companies with more than €1 billion, or $1.31 billion, in debt, far more than Volare is estimated to have.
By declaring insolvency, Volare is protecting itself from creditors' claims while it tries to sort out its finances.
As with Parmalat, the demise of Volare may lead to the courtroom.
Prosecutors have already begun investigating the airline's financial records on suspicion of false accounting and fraudulent bankruptcy, according to the Italian newspaper La Repubblica. Volare had a "hole" of €270 million in its accounts, according to an audit done by KPMG, Repubblica said. A Volare spokesman could not be reached for comment.
The collapse of Volare, which means "to fly" in Italian, could be a precursor to financial problems at other European low-cost airlines, and it shows that not just the traditional large airlines are running into financial problems that have been aggravated by the surge in the price of oil. Ray Webster, chief executive of EasyJet, said Tuesday that the number of low-cost airlines in Europe was not sustainable, and Michael O'Leary, chief of Ryanair, recently warned of a "bloodbath" in the sector.
"Ryanair has been very good at the low-cost business, but others in the industry will have problems in the future because the margins are very low and you can only cut costs so much," said Massimiliano Romano of Opus Consulting in Milan. "Competition is getting tougher all the time, and the price of oil keeps going higher."
The insolvency of Volare comes on the heels of financial problems at Alitalia, Italy's flagship carrier.
Alitalia teetered on the edge of bankruptcy for a year before securing a €400-million government-guaranteed loan that has given the flag carrier breathing room to begin implementing a restructuring plan.
After seven years in the air, Volare's problems came to a head Friday when the company could not cover the costs of leasing some of its airplanes, and insurance companies then pulled their coverage of the flights. Almost 1,400 employees risk losing their jobs, though Italy's welfare minister, Roberto Maroni, told La Repubblica that Rome would use "every means" to safeguard their position.
Volare is owned by the Argentine investor Eduardo Eurnekian; the airline's founder, Gino Zoccai; a Milan-based merchant bank; and an investment fund.
The company also runs a charter airline called Air Europe.
By Eric Sylvers International Herald Tribune
Volare Group, an Italian low-cost airline that has not flown since suspending flights late last week, declared insolvency on Tuesday, opening the way for government intervention.
Prime Minister Silvio Berlusconi's cabinet is expected to name an extraordinary commissioner for Volare when it meets on Thursday or Friday. The commissioner can be named only after a decree changes legislation introduced less than a year ago to sort out the chaos left by the bankruptcy of the dairy and food giant Parmalat. That legislation, which governs appointments of extraordinary commissioners, currently applies only to companies with more than €1 billion, or $1.31 billion, in debt, far more than Volare is estimated to have.
By declaring insolvency, Volare is protecting itself from creditors' claims while it tries to sort out its finances.
As with Parmalat, the demise of Volare may lead to the courtroom.
Prosecutors have already begun investigating the airline's financial records on suspicion of false accounting and fraudulent bankruptcy, according to the Italian newspaper La Repubblica. Volare had a "hole" of €270 million in its accounts, according to an audit done by KPMG, Repubblica said. A Volare spokesman could not be reached for comment.
The collapse of Volare, which means "to fly" in Italian, could be a precursor to financial problems at other European low-cost airlines, and it shows that not just the traditional large airlines are running into financial problems that have been aggravated by the surge in the price of oil. Ray Webster, chief executive of EasyJet, said Tuesday that the number of low-cost airlines in Europe was not sustainable, and Michael O'Leary, chief of Ryanair, recently warned of a "bloodbath" in the sector.
"Ryanair has been very good at the low-cost business, but others in the industry will have problems in the future because the margins are very low and you can only cut costs so much," said Massimiliano Romano of Opus Consulting in Milan. "Competition is getting tougher all the time, and the price of oil keeps going higher."
The insolvency of Volare comes on the heels of financial problems at Alitalia, Italy's flagship carrier.
Alitalia teetered on the edge of bankruptcy for a year before securing a €400-million government-guaranteed loan that has given the flag carrier breathing room to begin implementing a restructuring plan.
After seven years in the air, Volare's problems came to a head Friday when the company could not cover the costs of leasing some of its airplanes, and insurance companies then pulled their coverage of the flights. Almost 1,400 employees risk losing their jobs, though Italy's welfare minister, Roberto Maroni, told La Repubblica that Rome would use "every means" to safeguard their position.
Volare is owned by the Argentine investor Eduardo Eurnekian; the airline's founder, Gino Zoccai; a Milan-based merchant bank; and an investment fund.
The company also runs a charter airline called Air Europe.
By Eric Sylvers International Herald Tribune
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Very tough on those hardworking guys in Volare to lose their jobs due to that kind of management. No fault of theirs - just professionals doing a professional job and that's what you get.
The good news is that there are plenty of A320 and 330 jobs out there I believe. In Singapore alone there are four operators using 320s, Tiger, jetstar Asia, valuair and Silk
air.
Pilots should contact these operators as they are all recruiting at the moment.
Best of luck to you all especially at this time of year.
The good news is that there are plenty of A320 and 330 jobs out there I believe. In Singapore alone there are four operators using 320s, Tiger, jetstar Asia, valuair and Silk
air.
Pilots should contact these operators as they are all recruiting at the moment.
Best of luck to you all especially at this time of year.
Join Date: Jan 2004
Location: Surrey
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What really p***** me off is the state of Italian Law where aircraft that are rightfully owned by Lessors - and in many cases are registered OUTSIDE of Italy - can be restrained from flying out. Why is it one law for the Italians and another for most of the resyt of Europe - Spain excluded.
Why would any right-minded bank or lessor get involved in such countries when they cant readily repossess their assets.
A few years ago when National Jet Italia collapsed amid all sorts of scandal, at least one of the BAe 146 aircraft sat rotting for A YEAR before it was released.
God help the Lessors and Banks if Alitalia were to collapse...
Why would any right-minded bank or lessor get involved in such countries when they cant readily repossess their assets.
A few years ago when National Jet Italia collapsed amid all sorts of scandal, at least one of the BAe 146 aircraft sat rotting for A YEAR before it was released.
God help the Lessors and Banks if Alitalia were to collapse...
Join Date: Jul 2000
Location: Nirvana..HAHA..just kidding but,if you can tell me where it is!
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Sorry for not heeding the rules Danny!
Anyway, as the Italian Fiscal police have ordered the seizure of all the accounts of Volare Airlines from 1997 we shall soon be able to post the findings of the ongoing investigation.
Seems that Mr X...... and fiends MAY have been using the company as a cash dispenser machine.......Seems that Mr. X.... and fiends MAY have been paying an inflated aircraft leasing fee...to a company with family conections to Mr. X....
Seems that a new company with which Mr. X has publically declared no contact was sharing the same call centre used by Volare Web in order to sell tickets.
Do we smell parasites?
Really....it is all so blatant but until now nothing was being done about it. As for the alleged illegal flying practices as described by many ex Volare pilots!!! Ah, but that would interest ENAC so lets forget that!!!!
Pissed off I am because I thought we belonged to a serious group of professionals in this country but until ENAC get off their fat a---s all is lost and the world laughs.
P.S. White Knight....Quote " The company also runs(ruined) a charter company called Air Europe Spa.
Anyway, as the Italian Fiscal police have ordered the seizure of all the accounts of Volare Airlines from 1997 we shall soon be able to post the findings of the ongoing investigation.
Seems that Mr X...... and fiends MAY have been using the company as a cash dispenser machine.......Seems that Mr. X.... and fiends MAY have been paying an inflated aircraft leasing fee...to a company with family conections to Mr. X....
Seems that a new company with which Mr. X has publically declared no contact was sharing the same call centre used by Volare Web in order to sell tickets.
Do we smell parasites?
Really....it is all so blatant but until now nothing was being done about it. As for the alleged illegal flying practices as described by many ex Volare pilots!!! Ah, but that would interest ENAC so lets forget that!!!!
Pissed off I am because I thought we belonged to a serious group of professionals in this country but until ENAC get off their fat a---s all is lost and the world laughs.
P.S. White Knight....Quote " The company also runs(ruined) a charter company called Air Europe Spa.
Last edited by Yaw String; 26th Nov 2004 at 20:15.
Join Date: Nov 2004
Location: Milano
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Hi there, it's my first post out here! Just a quick intro for myself, I'm a Volare FO 
Don't have a clue about who told you this, JOB HUNTER, but my info about us is that we should resume the activity in quite a short time (maybe 1week); the "commissario" should be appointed in a couple of days.
After that, I agree with you that no one can possibly know what's gonna happen.
As a summary, sounds like we're gonna get back flying quite early. If we'll keep on flying, that will depend on factors we're not able to assess, here.
The good news is, on a longer term, the flights Volare offered will be undertaken by someone, if Volare fails, anyway. Just hope they won't be undertaken by some management who either left another company stranded, using the money for his business, or a management who -falsely, I heard- offered free flights to former VLE pax. That was bad taste. Pathetic
Take care, people. Write soon!!
Don't have a clue about who told you this, JOB HUNTER, but my info about us is that we should resume the activity in quite a short time (maybe 1week); the "commissario" should be appointed in a couple of days.
After that, I agree with you that no one can possibly know what's gonna happen.
As a summary, sounds like we're gonna get back flying quite early. If we'll keep on flying, that will depend on factors we're not able to assess, here.
The good news is, on a longer term, the flights Volare offered will be undertaken by someone, if Volare fails, anyway. Just hope they won't be undertaken by some management who either left another company stranded, using the money for his business, or a management who -falsely, I heard- offered free flights to former VLE pax. That was bad taste. Pathetic
Take care, people. Write soon!!
Join Date: Nov 2002
Location: Milan
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Hi guys. I know a lot of people would appriciate a failure of Volare (Ryanair management?
) but the rumors here would say differently! Let's hope for the moment.
Coming back soon...
Lupin
FO VA Airlines
) but the rumors here would say differently! Let's hope for the moment. Coming back soon...
Lupin
FO VA Airlines
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Time to Go
I was talking to someone high up in Air Europe Italy, which is part of Volare. He said they haven't been paid for two months. I used to work for AEI and enjoyed the two years before I retired. I have also worked for 11 airlines that have gone bust. My advice to any pilot is to get the hell out asap as soon as there is no pay cheque at the end of the month. I gather some of the AEI pilots have been offered jobs with Blue Panorama and turned them down. Fools