Alitalia (Merged)

[BOAC]

Its all a bit of an Italian farce really, isn't it?

With no other bidders in the fray and Alitalia's cash likely to run out this month

- taken from the linked article and dated 19/11! There could be those of us who should be forgiven for thinking that that was going to be imminent about 3 mothns ago, which begs the question - where has the bung come from? I suppose the Italian government could fund Alitalia for the repayment of the illegal subsidy to Alitalia from the Italian government.......................................

However, folks, as they say in Italy "It isn't over until the fat mama sings" - plenty more miles left in this one, I'm sure

[eu01]

Note please this event, as it paves the way for many similar incidents that are set to happen repeatedly over next months. I'd say, it is going to be a very typical scenario from now on.

Yesterday the Italian Court has interrupted the process between SEA (Milan Airports Management Company) and Alitalia. The management company requested about 1,200,000,000 Euro of compensation after the transfer of flights from Malpensa to Rome-Fiumicino. As a consequence of the Alitalia's state of insolvency, that process cannot continue. Within one year, SEA can only present a new appeal that would burden so called "Bad company".

...let God forgive you all of your sins, that's what the State can guarantee...

[757_Driver]

Originally Posted by the BBC

The conclusion of this deal - after Alitalia's search for a buyer that included a failed auction and a failed takeover by Air France-KLM - is being seen as as success for Prime Minister Silvio Berlusconi who had promised to save Alitalia.

Damn, I'd hate to think what would have had to have happened for it to be considered a failure

[philipat]

AZ Bunny goes on and on and...............

Damn, I'd hate to think what would have had to have happened for it to be considered a failure

Be charitable, this is Italy. Also, and of particular relevance to said country, "It ain't over till the fat lady sings". And I can't hear any singing just yet.

In all M&A, even Italian stlyle, or perhaps especially in Italian style in this case, the most difficult part is human, particularly where there is a wide difference in "culture" between two Organisations. IMHO, this is only Chapter 1 of a new book. Watch this space.

[philipat]

Worst over for EU Airlines?

Is this highlighting the end of the worst for European airlines?

IMHO, no. Whilst oil prices have come way down, that is in anticipation of a global recession which will result in much lower demand, a trend already evident. The airlines will respond by reducing capacity in an attempt to maintain yields (Fewer seats, higher prices) which, where possible, means fewer jobs.

On top of this, many Companies are now limiting business travel to contain costs and, where travel continues, Business class is no longer permitted, except for ultra-longhaul. Even then, many Companies are restricting Business Class travel to where the best deals can be found and no longer permitting unrestricted choice of the most expensive carriers such as Singapore Airlines, which is typically 35-50% higher than other carriers.

So most of the "Full Service" legacy carriers who make their profits and survive ONLY because of premium traffic, have another problem coming. This recession will be deep and long IMHO.

Then beyond the recession, as a result of all the Government money-printing and pump-priming, comes inflation, possibly hyper-inflation which will mean higher fuel prices again and also higher financing costs for new aircraft. And so on.

So, unless you are referring to the low-cost carriers, who have a business model which already accomodates these trends over the next 2-3 years and may even benefit, there is still a long way to go.

Aviation as an industry has truly been in the perfect storm of late. Have you ever considered changing industries?

[billy164]

(ANSA) - Rome, November 20 - The decision on who will be the foreign partner of Italy's future national carrier will be exclusively made by the company buying Alitalia's flight division without government interference, Industry Minister Claudio Scajola vowed on Thursday.

Does anyone else believe this is the first big test to see if anything will be different with Alitalia, the Italian government has made it clear it wants Lufthansa as a partner, but probably Air France/KLM is a better option perhaps even BA. Of course if Lufthansa is chosen it doesn't prove that CAI are Berlusconi's puppets but should the partner be any other airline then perhaps Alitalia is finally free from state control?

[Sitting Bull]

Now that CAI has officially taken over AZ, does anyone know if they already started to talk to the pilots one-on-one?

And if so: are they holding out to strenghten the Union, or are they signing, killing the Union?

Just wondering how CAI plans to take-off in less than 2 weeks without the pilots and cabin attendants on board.

[philipat]

AZ Bunny goes on and on and...............

Just wondering how CAI plans to take-off in less than 2 weeks without the pilots and cabin attendants on board.

I'm not saying this is entirely fair, but remember AZ is bleeding cash. CAI will, therefore, probably make offers to individual crew members on a "Take it or leave it" basis. The crews need to keep in mind that after the AZ problems, it will be difficult to secure employment elsewhere, especially given the context of a global recession/depression. That's life.

If CAI don't have enough crews to immediately re-start a money-losing operation, that doesn't matter so much. I guess that earlier offer to FR pilots still stands? And given the present downturn in the aviation industry, because of the recession, there are plenty of crews available.

Even Italy can't overcome a free market. The fact is, ultimately, reality prevails?

[Longhitter]

Phlipat,

Although I agree with you that the number of jobless pilots on the market will be sufficient to cover 'new' Alitalia's needs, getting them online in two weeks is impossible (please read one of my earlier posts), let alone two months. Even in ideal circumstances getting, say, 200 externally hired pilots online will take about a year. Taking the present state of affairs between the pilot unions and CAI into account the training and check pilots who have to train any new externally hired people will probably not put in their best efforts. CAI might accept some start-up delays, but they certainly cannot go without pilots for too long.

The pilot unions are playing their last card at the moment, because without pilots the new AZ is not going to fly. CAI will probably send out the job offers in the next week or so, I am interested in how well-coordinated the pilots in AZ are and wonder if they will break ranks.

Let's see what happens...

[Sitting Bull]

Exactly my point...Iīm a JAA Examiner and can tell you that it will be impossible to start-up the new Alitalia without the pilots, unless CAI excepts a delay of several months, meaning, that by then the market for the new Alitalia probably doesnīt exist anymore.

Personally I just want to see if the pilots are still strong when facing CAI one-on-one...it is easy if one can hide behind the union, but entirely different when alone.

[philipat]

AZ Bunny goes on and on and...........

SB and LH

Yes, you are both right. I'm wondering, however, if it might be done differently?

With the resession, there's too much capacity and AZ has been losing money FROM OPERATIONS. It will take time to identify and get rid of the many inefficiencies. Perhaps, whilst they are analysing the problems, which will take time, they might start with the few profitable longhaul routes and then add back other services progressivley having established viability and profitability of each route. This would mean that crews could be added over a period of time and would give management more flexibility. Just a thought.

[Seljuk22]

AZ will cut a lot of domestic and international flights from tomorrow until mid-December when the "new AZ" will start.

EK and EY applied for slots.
EK: MXP 21, FCO 21, VCE 14 +28 Cargo flights
EY: MXP 7, FCO 7

The "new AZ" will bring passengers from its doestic and international flights to these EK/EY flights.

AKI - Adnkronos international Italy: UAE-based airlines to use Milan, Rome and Venice as European hubs

[Finn47]

The Italian newspaper Corriere della Sera reports that Alitaliaīs special commissioner Fantozzi has today officially signed a final sales agreement which transfers ownership of Alitalia to the CAI group of investors from today, for a total amount of 1,52 billion euro. The same paper reported some days ago that lately only 40 % of seats per flight have been sold, which is pretty dismal. Itīs going to take some doing to turn Alitaliaīs fortunes around, I think, but at least the deal is final now.

Alitalia ceduta a Cai per 1,52 miliardi - Corriere della Sera

BBC NEWS | Business | Alitalia taken over by consortium

[Longhitter]

Haven't read, seen or heard anything about pilots and cabin crew approving the new work contract. Any news on this from our colleagues in Italy?

[Longhitter]

Disregard my last, here's a more detailed account:

ANSA.it - News in English - Alitalia officially sold to CAI

[md4490]

...latest news from the inside...a few thousands of AZ employees are " cassaintegrati" what that means is that they will receive 80% of their net income for the next four years and after that they will have a "minimum allowance" for the next three (7 years total)...the others are now with Cai...most of us will remain Rome based but quite a few people have been transferred in other bases: Catania, Naples,Turin,Milan,Venice... seniority was the rule for cockpit crews but for cabin it seems it was quite random...lot of people got quite upset to say the least and it is understandable...as for the contract goes we will fly as of Enac flight time limit but this is nothing new...a slight pay cut is forecast (about 7%) but I have not seen a Cai schedule yet not have gotten a Cai paycheck as well...the worst thing is that the key people are the same, i.e. they did not now how to managed a company before I do not think they have learned overnight...the only light at the end of the tunnel is the "partner" they have still to choose and that will be purely a political choise as this all operation has been...whoever will it be, it will be somebody with the "know how' and the expertise to make the company profitable...Alitalia is and will be the name of the company and will still be identified as AZ...so there you have it in a nutshell
Cpt.(Az-Cai-Az again) 320 Family

[Finn47]

Alitalia to sell 46 aircraft

Everything must go?

767īs, MDīs, ERJ145īs and ATRīs, 46 of them, all Italian registered and owned by Alitalia and Alitalia Express are to be sold to interested parties. The special administrator announces the sale here:

http://www.alitaliaamministrazionest...stract_eng.pdf

Initial bids are to be sent in by Jan. 29.

[fendant]

Currently I can only see a market for the ATR's ( at very low prices ). Don't think that the dreadful ERJ's and the MD gaz guzzlers will find a new home soon ( unless may be Moritz Suter says Hello and finds again some weird financing for his money burning hobby ).

[BIGBAD]

they'll have to give'em away.......

[TopBunk]

More likely pay someone to take them away!