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Press reports on jobs
"The new Alitalia would keep its Italian identity as well as its own brand and logo while about 1,600 jobs out of 11,000 would be lost. Leading unions at Alitalia raised objections on Monday to the takeover bid, in particular to plans to scrap freight operations and break up the maintenance unit. The Air France-KLM is demanding an agreement with the unions by March 31 before launching its bid." and "Turning Alitalia’s fortunes around will be an heavy task for the French-Dutch group. In addition to its financial troubles, the Italian carrier is saddled with a fleet of aging, fuel-guzzling aircraft and a bloated, strike-prone work force of 11,000. Alitalia said Sunday that Air France-KLM’s plan included the loss of around 1,600 jobs. The fate of an additional 8,300 people who work for Alitalia’s maintenance subsidiary, Alitalia Servizi, remained uncertain." |
indeed, if AZ is left alone they will go down in 2 months (as per IT goverment)....
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I hope (and presume) that no EU taxpayers money is going into this. The world doesn't need Alitalia.
It should have died of its own mismanagement long ago. |
Why is the European commission allowing this takeover of AZ by AF /KLM. In the 1990,s it put conditions in the way of a BA /KLM merger now it seems to allowing a merger of three big European airlines with hardly any restrictions at all. Will any restrictions reappear when a British airline wants to takeover a European airline.
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My guess, comet, is that we now have a different world. If the EU continued to prevent cross-border mergers, then more carriers would have to close. Better to lose a few jobs than all. We shall probably see two large carriers and then a few medium ones, then a few countries managing to retain their own. The LCCs are increasingly cross-border and so the consolidation of the European carriers will continue, as it is around the world. The old order is passing.
I think that AF/KLM have done very well. If they get approval, then they have expanded to the south with many routes added; if they do not get approval, the carrier will probably fold and they can pick up the pieces. Since they will now have done Due Diligence, they know exactly what the carrier has inside it. Nothing will happen until after the election and it will be fascinating to see if the unions and politicians realise that they have reached the end of the road. Next up? By all accounts, Olympic. |
Alitalia... what next?
Trying to book seats on Alitalia last night but all AZ routes "on stop". Further professional enquiries reveal that a "buyout is imminent"
Whatever next?? |
All routes are selling as normal now , would be very much surprised if anything was announced before the elections...
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I'm no expert on the industry, but i reckon that in a few monhts time the carrier will finally go....
If they do go, i do however seeing light at the end of the tunnel, the carrier coming back, for example Swissair came back as Swiss |
Well, that was crossair really, wasn't it ?
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The extract from today's article in The Independent:
Happy days are here again: Silvio Berlusconi is about to win another Italian election. (...) The last time polls were published – they are banned in the last two weeks of Italian campaigns – the media mogul's People of Freedom coalition was 5 to 10 percentage points ahead of its principal opponent, the Democratic Party, led by Walter Veltroni (...) Mr Prodi desperately triedto persuade the Alitalia unions that the Air France-KLM takeover offer was the only solution, that money was running out, no further state support would be forthcoming and that soon the firm would go bust, with the loss more than 19,000 jobs. Mr Berlusconi said the terms of Air France's bid for Alitalia were "not just unacceptable, but offensive", a reminder of "the French attitude of imposing themselves on others". Italy must remain in Italian hands, he said, the Italian investors would show up in a short while, and perhaps he himself could play a part in saving the carrier. That was the music they wanted to hear. The unions rejected Air France's offer; Air France walked away, and now Alitalia is weeks from the knacker's yard. Mr Berlusconi and his phantom investors are nowhere to be seen. |
Alitalia bankrupt end of August
MILAN (Thomson Financial) - Alitalia SpA (News) will be restructured in the last weekend of August, leading to the creation of a new airline in which a group of businessmen is expected to invest 1 billion euros, the daily MF said without giving a source.
Between Aug. 29 and Sept. 1, Alitalia will be put into liquidation and its main assets will be transferred to a new company, it said. The new Alitalia will have Roberto Colaninno as chairman and Rocco Sabelli as chief executive, it added. The airline is also due to take over its Italian peer AirOne for 300 million euros, the daily said. Source:=> Alitalia to be restructured end-Aug; new company created - report <= :D:D:D |
The airline is also due to take over its Italian peer AirOne for 300 million euros |
All pipe dreams - Berlusconi needs to accept that the asset needs to be sold to a strong international player if he wants any "national" airline to survive. Air One and its investors do not have the finance to control a rump of Alitalia and survive in this market, while the debt would simply be too onerous.
I rather doubt anyone will novate the fuel hedges to the new company, if indeed Alitalia have any at all in place. The reference to the takeover of Air One is simply a structure issue - not the reality of control of course, so disregard that aspect of it. |
Things will be resolved by the first foreign fuel truck driver who asks for a cash pre-payment to refill. A matter of a few hours and any restructuring dreams are gone. All experienced with SR.
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Alitalia have been bankrupt for years. What you see now is the re-arranging of the deckchairs on the Titanic. But, being Alitalia, don't be surprised if the Government of Italy don't come riding out of the woodwork to the rescue, a matter of national pride. You will need to look closely at the totally different ways that Switzerland and Italy are governed to realise that the Swiss solution won't be the Italian solution.
Just my 2c worth. |
Although not directly related to the topic, I don't suppose anybody here has pax stats for Italian domestic routes? Thanks.
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How many times has this title been headlined, yet they continue onwards and forwards. RIP but not his August?
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Alitalia seeks bankrupcy protection
BBC NEWS | Business | Alitalia seeks bankruptcy measure
Troubled Italian carrier Alitalia is to seek bankrupcy protection from its creditors as it attempts to restructure. AirFranceKLM and Lufthansa (see Lufthansa shopping spree thread on this forum) have expressed interest in investing in the new entity, which may be formed as profitable short-haul routes are hived off to be merged with Air One. Interesting... S. |
Well it looks like AFKLM/LH or whoever will be buying AZ for 1 euro, not whatever sum had been in discussion previously.
The very notion of "bankruptcy protection" I regard as bizarre and absurd. There have been periods when most of the US airline industry has been in Chapter 11. This creates an unfair advantage for airlines like AZ which can continue to compete with BA, BD, EZY, RYR etc. in circumstances which would have wiped any of the latter in a more rational company law environment. |
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