Alitalia (Merged)
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Keep on hoping......
From atwonline:
"Alitalia will end up in foreign hands, Unicredito Italiano CEO Alessandro Profumo predicted in an interview with Il Sole 24 Ore, in which he blamed Italian protectionism. "We've defended Alitalia so well that it will disappear as an Italian company since thanks to protection, more protection, and yet more protection, the company is no longer able to stand on its own feet," he said. Unicredito and Aeroflot constituted one consortium that dropped out of the Italian government's failed auction for its stake in the loss-making flag carrier."
From atwonline:
"Alitalia will end up in foreign hands, Unicredito Italiano CEO Alessandro Profumo predicted in an interview with Il Sole 24 Ore, in which he blamed Italian protectionism. "We've defended Alitalia so well that it will disappear as an Italian company since thanks to protection, more protection, and yet more protection, the company is no longer able to stand on its own feet," he said. Unicredito and Aeroflot constituted one consortium that dropped out of the Italian government's failed auction for its stake in the loss-making flag carrier."
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more from atwonline.com:
Alitalia board outlines 'survival plan,' calls for 'substantial' capital injection
Monday September 10, 2007
Alitalia's board on Friday outlined financial and performance targets for its "survival/transition" plan that aims to keep the carrier viable through 2010 as it continues to seek a sale to private investors.
Meeting following the collapse of its recent privatization push, the board reiterated its call for a "substantial injection of financial resources," presumably from the Italian government.
The board's plan, set to guide operations from March 30, 2008, through 2010, aims to reduce overall revenue 2.7% and lower costs by 8%. This will be achieved through a "repositioning of long-haul activities and the development of low-cost activities," as well as "improved flight productivity," the board said. The airline plans to carry 28.7 million passengers in 2010, with numbers rising more than 3.8% per year. It expects to carry 25.5 million this year.
Overall capacity will rise1.6% annually, according to the board's plan. Short-haul services will have flat growth over the period as measured in flight hr. while long-haul hr. will grow 5%. Cargo capacity will rise by 4.5% annually.
The board said it has made "first contacts" with "potential investors" and is aiming to complete the carrier's sale "in the shortest possible time." AZ has retained Citigroup as an adviser to help find buyers.
Chairman Maurizio Prato told reporters Friday that by "the end of the month all those potentially interested will be contacted by the adviser." He said there have not been any "shows of interest" so far.
by Aaron Karp
Alitalia board outlines 'survival plan,' calls for 'substantial' capital injection
Monday September 10, 2007
Alitalia's board on Friday outlined financial and performance targets for its "survival/transition" plan that aims to keep the carrier viable through 2010 as it continues to seek a sale to private investors.
Meeting following the collapse of its recent privatization push, the board reiterated its call for a "substantial injection of financial resources," presumably from the Italian government.
The board's plan, set to guide operations from March 30, 2008, through 2010, aims to reduce overall revenue 2.7% and lower costs by 8%. This will be achieved through a "repositioning of long-haul activities and the development of low-cost activities," as well as "improved flight productivity," the board said. The airline plans to carry 28.7 million passengers in 2010, with numbers rising more than 3.8% per year. It expects to carry 25.5 million this year.
Overall capacity will rise1.6% annually, according to the board's plan. Short-haul services will have flat growth over the period as measured in flight hr. while long-haul hr. will grow 5%. Cargo capacity will rise by 4.5% annually.
The board said it has made "first contacts" with "potential investors" and is aiming to complete the carrier's sale "in the shortest possible time." AZ has retained Citigroup as an adviser to help find buyers.
Chairman Maurizio Prato told reporters Friday that by "the end of the month all those potentially interested will be contacted by the adviser." He said there have not been any "shows of interest" so far.
by Aaron Karp
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Alitalia is a dinosaur in airline terms and unless drastic reform is undertaken it is going to go the same way as Sabena and Swissair.
It's sink or swim time!
It's sink or swim time!
Paxing All Over The World
If the EU prevents further subsidy they will sink, as they are too far gone. There are then two main possibilities:
- The Italian Govt will make a 'sideways' subsidy to avoid EU regulations. This would mean setting them up as a new company but at some reasonable distance from the govt.
- An Italian consortium get themselves together to buy the carrier, mainly for the routes.
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Don't blame on us, observers, that we aren't optimistic about Alitalia. Even the carrier's CEO seems to share quite a pessimistic view nowadays...
"Alitalia is in a comatose state, it is in the intensive care unit," Maurizio Prato told senators in Rome, ANSA news agency reported.
"Personally, I am surprised by the general refusal to accept reality and by the fact that a company in this state does not have the possibility, even though it is listed on the stock market, to make autonomous decisions even if this is needed for its survival," he said.
Prato, who took over at Alitalia last month after an auction for the government's 49.9-percent stake failed, has drawn up a plan to keep the airline going until a buyer is found.
Alitalia outlined a new rescue strategy last month that included cutting an unspecified number of jobs and downsizing operations at Malpensa airport in the northern city of Milan in order to make Rome the airline's main hub.
But the plan has been met with fierce resistance from unions, who oppose major job cuts, and from northern politicians who want Alitalia to keep Milan as a hub.
"Personally, I am surprised by the general refusal to accept reality and by the fact that a company in this state does not have the possibility, even though it is listed on the stock market, to make autonomous decisions even if this is needed for its survival," he said.
Prato, who took over at Alitalia last month after an auction for the government's 49.9-percent stake failed, has drawn up a plan to keep the airline going until a buyer is found.
Alitalia outlined a new rescue strategy last month that included cutting an unspecified number of jobs and downsizing operations at Malpensa airport in the northern city of Milan in order to make Rome the airline's main hub.
But the plan has been met with fierce resistance from unions, who oppose major job cuts, and from northern politicians who want Alitalia to keep Milan as a hub.
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Maybe he's just waving his job goodby. Note the registration, it is NOT italian, eu01, when I copy/paste articles like U do, I get banned from the Italian forum. But this is no news to me: italian way of applying the rules: SELECTIVELY. Ci salva Beppe Grillo....
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Air France - Bids for Alitalia
Air France KLM bids for Alitalia
Air France KLM has made an offer for Alitalia and other airlines and investment groups are expected to follow suit.
In October, the Italian carrier identified six potential private bidders to buy the 49% share currently owned by the country's government.
According to BCC reports, other possible bidders include Lufthansa, Aeroflot, Air One, private equity firm Texas Pacific, and a financial consortium.
Making the bid today, Air France KLM chairman Jean-Cyril Spinetta said: "This major step in European consolidation would not only be beneficial for passengers but would also meet the requirements for the group's economic and financial stability."
The airline said a large number of European and intercontinental destinations would be proposed to and from Rome-Fiumicino Airport, which would become a hub.
Many medium and long-haul direct services would operate to and from Milan, with enhanced service and more early morning departures and evening return flights to better meet the needs of business customers.
Alitalia has been hit recently by increased costs, tighter competition and a series of strikes.
Its board is due to meet later today to discuss the bid.
Air France KLM has made an offer for Alitalia and other airlines and investment groups are expected to follow suit.
In October, the Italian carrier identified six potential private bidders to buy the 49% share currently owned by the country's government.
According to BCC reports, other possible bidders include Lufthansa, Aeroflot, Air One, private equity firm Texas Pacific, and a financial consortium.
Making the bid today, Air France KLM chairman Jean-Cyril Spinetta said: "This major step in European consolidation would not only be beneficial for passengers but would also meet the requirements for the group's economic and financial stability."
The airline said a large number of European and intercontinental destinations would be proposed to and from Rome-Fiumicino Airport, which would become a hub.
Many medium and long-haul direct services would operate to and from Milan, with enhanced service and more early morning departures and evening return flights to better meet the needs of business customers.
Alitalia has been hit recently by increased costs, tighter competition and a series of strikes.
Its board is due to meet later today to discuss the bid.
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Alitalia fate decision 18 DEC
On RAI-TV news - Alitalia fate will be decided tomorrow Tuesday 18 DEC.
xxx
Two offers are made, one from the Air France-KLM group...
The other from Italian company Air One.
The AF-KL offer preferred by unions (no reduction of 11,000 staff).
My Italian is not that good, so I do not offer more details.
xxx
Happy contrails
xxx
Two offers are made, one from the Air France-KLM group...
The other from Italian company Air One.
The AF-KL offer preferred by unions (no reduction of 11,000 staff).
My Italian is not that good, so I do not offer more details.
xxx
Happy contrails
This will be interesting to watch. Seems like a tall order to promise to retain all the 11.000 staff of this overbloated company. Probably they will try to lose some through natural attrition. I flew in Italy for a while and Alitalia is the quintessential government bureaucracy. I deadheaded with them a few times and the number of very senior cabin crew is only matched by US airlines on international routes. 
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The dutch part of AF-KL should know better. Once bitten twice shy. We'll see if this strike-happy Airline is worth saving, I have my doubts and happy I'm not a management team member of AF-KL or a shareholder.
It is good for the job market that a party is taking over the company, better than an inundation of unemployed Alitalia pilots looking for jobs.
It is good for the job market that a party is taking over the company, better than an inundation of unemployed Alitalia pilots looking for jobs.
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Come on guys,
Alitalia is a perfect airline, only the passengers are disturbing factor!
Most users would like to see Alitalia ( the airline from Berlusconistan ) go under quickly and expect that non-union ( or at least intelligent union ) quality airlines from Northern Europe will take over the internal Italian routes. Long haul certainly will be picked up by ME Airlines and the legendary US quality carriers. Italian trains are unfortunately not a pretty alternative, as they show the same symptons as AZ ( murdered by stubborn unions and mismanaged by a humongous bureaucracy with full pensions and life time free ticket privileges being availabe for them latest at age 50 ).
The best thing in AZ's long haul fleet were the Expresso machines, I agree with the above statement about the cabin crews.
Best thing it would go bankrupt by itself, the tought that it might bring down AF-KL in 2-3 years is frightening
. Lufthansa has clearly communicated that any investor will loose its investment grade rating. Remember that even Aeroflot bailed out in the first round.
The roads in Italy are not that bad, and driving is never boring, it is at least an adventure to go from A to Z in Italy by car.
Frank
Alitalia is a perfect airline, only the passengers are disturbing factor!
Most users would like to see Alitalia ( the airline from Berlusconistan ) go under quickly and expect that non-union ( or at least intelligent union ) quality airlines from Northern Europe will take over the internal Italian routes. Long haul certainly will be picked up by ME Airlines and the legendary US quality carriers. Italian trains are unfortunately not a pretty alternative, as they show the same symptons as AZ ( murdered by stubborn unions and mismanaged by a humongous bureaucracy with full pensions and life time free ticket privileges being availabe for them latest at age 50 ).
The best thing in AZ's long haul fleet were the Expresso machines, I agree with the above statement about the cabin crews.
Best thing it would go bankrupt by itself, the tought that it might bring down AF-KL in 2-3 years is frightening
. Lufthansa has clearly communicated that any investor will loose its investment grade rating. Remember that even Aeroflot bailed out in the first round.The roads in Italy are not that bad, and driving is never boring, it is at least an adventure to go from A to Z in Italy by car.
Frank
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Me thinks that the KLM guys have spent too much time in their cafes if they are promising not to reduce the 11,000 AZ employees (won't call them workers as this is an alien concept to most of them).
Fendant....
"and the legendary US quality carriers" who, like AZ, have all survived on massive state aid over the last few years.
AZ is one of the best examples of how toothless and useless the EU is at enforcing it's own policies. There is no way back for AZ under their current labour agreements and the Italian Unions will not change their views that the state owes them all a living. They will only survive by more illegal subsidy from their Government, in whatever way it is delivered.
The only positive to come out of this is that their is a good size market for both internal and international traffic within Italy and if (and it is a HUGE if) someone can actually get the unions and employees to see that 'money in' has to exceed 'money out' before a business can be successful; then there is hope that an Italian owend operator will be the main provider.
I just can not see the Italian Government allowing AZ to die so watch out for some slight of hand to inject a few billion Euros into the coffers - money that will come directly from the EU budget!!
Fendant....
"and the legendary US quality carriers" who, like AZ, have all survived on massive state aid over the last few years.
AZ is one of the best examples of how toothless and useless the EU is at enforcing it's own policies. There is no way back for AZ under their current labour agreements and the Italian Unions will not change their views that the state owes them all a living. They will only survive by more illegal subsidy from their Government, in whatever way it is delivered.
The only positive to come out of this is that their is a good size market for both internal and international traffic within Italy and if (and it is a HUGE if) someone can actually get the unions and employees to see that 'money in' has to exceed 'money out' before a business can be successful; then there is hope that an Italian owend operator will be the main provider.
I just can not see the Italian Government allowing AZ to die so watch out for some slight of hand to inject a few billion Euros into the coffers - money that will come directly from the EU budget!!
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With the way this airline is managed, poor service, unions etc. there is no way you can make any money with it. Best solution would be to shut it down and restart an airline on new conditions etc.
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Good Idea TeDiek,
The only problem still remaining is that the same unions are also running the airports and ATC in Italy
.
Guess what they will (can ) do to the airlines which step in for the wrotten AZ?
Frank
The only problem still remaining is that the same unions are also running the airports and ATC in Italy
. Guess what they will (can ) do to the airlines which step in for the wrotten AZ?
Frank
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Alitalia accepts Air France offer
AF/KL buy AZ.
http://news.bbc.co.uk/1/hi/business/7299203.stm
Will this make them the largest airline in the world (PAX numbers) or are AA and Southwest still bigger?
Cheers.
http://news.bbc.co.uk/1/hi/business/7299203.stm
Will this make them the largest airline in the world (PAX numbers) or are AA and Southwest still bigger?
Cheers.
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Air France buy out of Alitalia accepted by Ally
No big surprises there then, if you are a basket case and someone wants you ( God knows they must . . . WHY ? ) I guess accepting is a foregone conclusion.
Spanish Teletext reports that one MINOR problem is a new labour agreement with Alitalia employees, Oh yeah that will be really minor. . . better get Super Sarko a few cheapo tickets to Italy with Ryanair. . . Ha Ha, and he can continue his "man who saved the world" self- promoting PR spectacle.
Spanish Teletext reports that one MINOR problem is a new labour agreement with Alitalia employees, Oh yeah that will be really minor. . . better get Super Sarko a few cheapo tickets to Italy with Ryanair. . . Ha Ha, and he can continue his "man who saved the world" self- promoting PR spectacle.
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Alitalia accepts Air France offer. Maybe?
The BBC reports 16 March 2008, 09:31 GMT 
"Troubled Italian carrier Alitalia has agreed to be bought by rival Air France for a cut-price 138m euros(£106m:$215m) in a move to save the state airline.
The Italian government, which holds 49.9% of Alitalia, failed to sell the company by auction in 2007.
Alitalia has lost money for five years, and has struggled to clinch a buyout.
Air France-KLM offered one share per 160 Alitalia shares, valuing Alitalia at a low-value 0.10 euros a share.
That is a 81% reduction on Alitalia's current share price.
The offer includes plans for a 1bn euro capital injection by the Franco-Dutch airline, which says it will also pay 608m euros to buy back Alitalia bonds.
The proposed purchase could become a hot topic in Italy's general election, being held on 13 and 14 April.
'National leader'
Alitalia, which is struggling under 1.2bn euros of debt, is hoping the tie-up will generate significant savings.
There are a number of hurdles to be overcome before the deal is sealed. Air France-KLM are seeking support for the move from Italian trade unions.
The Italian government must also agree to sell its shares, and the country's stock market and European Union competition regulators must also give their backing.
Air France-KLM has a restructuring plan for Alitalia to enable it "to rediscover the means of its development and to consolidate its status as a national leader". And it said Alitalia will maintain its national identity within the Air France-KLM group after the takeover, which could be completed by mid-2008."
"Troubled Italian carrier Alitalia has agreed to be bought by rival Air France for a cut-price 138m euros(£106m:$215m) in a move to save the state airline.
The Italian government, which holds 49.9% of Alitalia, failed to sell the company by auction in 2007.
Alitalia has lost money for five years, and has struggled to clinch a buyout.
Air France-KLM offered one share per 160 Alitalia shares, valuing Alitalia at a low-value 0.10 euros a share.
That is a 81% reduction on Alitalia's current share price.
The offer includes plans for a 1bn euro capital injection by the Franco-Dutch airline, which says it will also pay 608m euros to buy back Alitalia bonds.
The proposed purchase could become a hot topic in Italy's general election, being held on 13 and 14 April.
'National leader'
Alitalia, which is struggling under 1.2bn euros of debt, is hoping the tie-up will generate significant savings.
There are a number of hurdles to be overcome before the deal is sealed. Air France-KLM are seeking support for the move from Italian trade unions.
The Italian government must also agree to sell its shares, and the country's stock market and European Union competition regulators must also give their backing.
Air France-KLM has a restructuring plan for Alitalia to enable it "to rediscover the means of its development and to consolidate its status as a national leader". And it said Alitalia will maintain its national identity within the Air France-KLM group after the takeover, which could be completed by mid-2008."
Paxing All Over The World
Amazing. Since AF/KLM agreed not to shed any jobs when they merged and now they are suggesting that they will not shed jobs when acquiring AZ?????
If that truly, seriously is the intent, then I am truly, seriously glad that I don't own any stock in AF/KLM! I cannot imagine how they think they can add AZ to their super carrier and have super numbers of staff? Where are they going to get the money? I must have missed something obvious.
If that truly, seriously is the intent, then I am truly, seriously glad that I don't own any stock in AF/KLM! I cannot imagine how they think they can add AZ to their super carrier and have super numbers of staff? Where are they going to get the money? I must have missed something obvious.