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From Alitalia's press release:
The Board approved a revised strategic plan that is based on becoming more efficient in the management of assets and more competitive in the marketplace through a sharp reduction in costs. The plan also calls for the reduction in the number of medium-haul aircraft, while maintaining the number of hours flown in 2013 through fleet optimization and an increase in international and intercontinental flights. The Board also agreed to postpone to November 27th the deadline for the shareholders to participate in the recapitalization plan approved on October 15, 2013. An update (Nov. 15th): Aeroflot , the state-controlled Russian airline, on Friday ruled out buying or aiding stricken Italian carrier Alitalia, which is seeking a cash injection to keep flying. “Aeroflot does not plan to buy Alitalia, nor will it participate in any way in its financing,” a representative of the Russian flag carrier told NEWS.GNOM.ES. ... Italian officials say they hope they can still find another international airline to invest and save the carrier, but time is running out after Air France-KLM walked away from the 300 million euro ($403 million) call for more cash. |
The Italian post office is now planning to change its statutes (essentially articles of association) to now include air transport of passengers in their activities. Wonder why the sudden change of business plan ?
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Does the 27 November (i.e. tomorrow) deadline for raising extra cash from investors still stand, or have events diminished the importance of this date ?
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Well, at least Ryanair did hurry to get the Italian expansion announced before the investors make their decision. Strategically correct, as any money injection will have to be rethought in light of this move.
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Anyone got 127 million euros spare ? Existing shareholders say they can't afford 300 million euros as they're finding the Xmas shopping a bit more expensive than they had expected. New deadline for the cash is either 8th or 10th of December.
Alitalia expects cash call to be fully covered | Reuters |
As a private person? I'd never invest. As a politician? Fortunately I'm not one of them.
Good article here, Should Alitalia Be Allowed To Fail? "The real problem is getting past the politics. Alitalia is not a national treasure anymore, it's a national disgrace and it has been for years," said airline industry analyst James Halstead, managing partner at UK-based Aviation Strategy. |
More to the point, where has the money gone since it's last resurrection?
You can see why AF/KLM don't want to invest further, why did they bother in the first place? Alitalia is a basket case as it stands. |
According to the half-official news of The Wall Street Journal Alitalia has just succeeded in raising from its shareholders and creditors a required minimum of €225 million so that Italy's post office will invest in the airline. That will let Alitalia keep flying for several month as it looks for a partner to ensure its long-term survival.
Tomorrow we should expect the announcement of a new saving plan. Italian trade unions will be faced with about 1,900 redundancies and savings of EUR 350 million, part of which would came from cuts to all salaries exceeding 40 000 euro/ year. |
That will let Alitalia keep flying for several month as it looks for a partner to ensure its long-term survival. On this occasions its similar but its Venice, which is already flooded. |
Alitalia has asked banks to extend an existing loan agreement by 50 million euros (£41,415,433.34), daily Il Messaggero reported on Saturday, in a sign the troubled Italian airline may again be facing a liquidity crunch just weeks after a capital increase. Apparently, the show must go on. But does it really have to? |
Who picks up the tab for all of these lines of credit that the airline gets if it all goes pair shaped after all?
EU rules are completely ignored as time goes by, sadly the same lines of credit were not possible for some other airlines that didn't make it due to lack of financial backing and are confined to the history books. There has to be a big reality check, the airline in its present form is not sustainable, and with the impending expansion of Vueling, Ryanair and easyJet in Rome can only add woe to the saga. The effects of bookings already with these airlines is bound to be hurting. |
Berlusconi about Alitalia:
"We rescued Alitalia in 2008. Don't blame me as the former Prime Minister for the next crisis right now. The Italian flag carrier carries 21 million passengers and employs 14 000 people, while Ryanair carries 61 million and does so with only 6000 employees". That kind of explanation given by Berlusconi today as Alitalia, further in debts, still didn't get the rescue package from Etihad. |
Would we feel the same way if BA looked like going out of business??
I don't care but a lot of people equate their national airline withe Country |
I don't care but a lot of people equate their national airline withe Country By the way, the letter from Etihad's Hogan finally did arrive (yesterday evening). Well, with the new, much worse conditions. The conditions are in fact much worse than these given by KLM/ Air France back in 2008. Did this struggle for a "national airline" really pay? |
I know that,you know that and I'm sure the Treasury or Finance Ministry in each country knows it
but there are jobs at stake, political influence, the press (think "Finnish Govt sells Finnair out to Ryanair"), freebies from the airline, jobs for retired politicians and civil servants....................... It has to get really bad before sanity kicks in......... :rolleyes::rolleyes: |
From Travel Mole:
Etihad rescues ailing Alitalia Abu Dhabi-based Etihad today confirmed that it had taken a 49% stake in Alitalia following months of negotiations. Although the size of the deal was not revealed, it is believed to be the biggest investment for the Middle Eastern carrier. The Italian government revealed earlier this month that Etihad was looking to invest €560 million in Alitalia, with a further €690m over the next four years. The deal could save the near-bankrupt Italian national carrier, but it is expected to lead to widespread job losses. Etihad is expected to shrink the workforce by 2,250 to around 11,500. The airlines said they will now move to finalise the transactional documents, that will include the agreed upon conditions, as soon as possible. The investment is subject to final regulatory approvals. Wednesday, June 25, 2014 |
Alitalia/Etihad to buy 49% stake in Air Malta
Sound familiar?
Alitalia/Etihad to buy 49% stake in Air Malta, Opposition gives initial reaction - Times of Malta mobile Edit - Not sure if this warrants it's own thread or not? |
The story goes on...
Troubled airline Alitalia on Friday presented trade unions with plans to cut over 2,000 jobs and slash salaries by up to a third under a cost-cutting survival plan. Unions said the job cuts would total more than 2,400, nearly a fifth of the company's global headcount, while the company put the total at 2,000 and said there plans to recruit 500 new cabin crew by 2019 as the restructuring hopefully brings a return to profitability. Company CEO Cramer Ball said the job cuts would mainly come from a 51 per cent reduction in office staff and a 20 per cent reduction in non-flying operational roles./.../ Union officials told AFP that staff who survive the cull are being asked to accept drastic pay cuts -- up to 28 percent for pilots and up to 32 percent for hostesses and stewards. The unions called for a strike on April 5 to protest a restructuring plan./.../ |
Looks like there will be some kind of filing procedure with the courts this week around bankruptcy protection or special administration. Italian Govt have said they refuse to spend any more taxpayer funds on the company and I doubt the UAE-based sugar-daddy is inclined to offer more cash either
Anyone have thoughts ? |
My best guess is a Swiss style rebirth - someone else taking the Alitalia branding.
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Lufthansa CFO announced they have no intention of buying Alitalia
Norwegian have said they don't intend to buy any Alitalia assets Italian State Railways have said they are not interested Italian Govt are to arrange a 6 month bridging loan - presumably to ensure an orderly period while everyone decides what to do and presumably keep the tourists coming over the main tourist season |
How long does it take the EU to turn down a state aid application?
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Italy, as a state, is effectively bust. However it's widely known that it's economy is too big for the EU, or to give it it's other name Germany, to bail out.The Italian state cannot afford to bail out Alitalia nor can it afford to let it go. They hope by kicking the can down the Piazza they can buy some more time to figure out another complicated way to pour money down their unique pan. The EU will look on but take no action for fear that things may become worse..House of cards indeed..
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They have to turn it down, and all concerned must know that.
They'll presumably be looking to use the time before it happens to get a replacement organised, but after what happened with Estonian Airways and Estonia getting caught off guard they'd be wise to be quick about it! |
Selling Heathrow slots might give them a short-term lifeline? 5 (at least) return slot pairs per day must be valuable, unless the Administrators will do that for them?
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Originally Posted by Buster the Bear
(Post 9754467)
Selling Heathrow slots might give them a short-term lifeline? 5 (at least) return slot pairs per day must be valuable, unless the Administrators will do that for them?
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Any word as to what happened at the shareholders meeting today?
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Shareholder meeting delayed from 27 April to 02 May
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Depending upon the time of arrival and departure, those slot pairs are probably worth more than the airline!
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Alitalia no longer owns its LHR slots. Alitalia did a sale and leaseback with its 49% shareholder when it bought its stake in the airline.
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Expect a classic judge. Somehow money will be found. Backroom deals to find private funds. Perhaps a few very interesting promises to affomentioned funders from Rome in exchange for keeping the wheels turning.
Alitalia has more lives than a plague of cats! |
Board has asked for Alitalia to go into special administration. Commissioners to be appointed to see what can be salvaged. Flight operations continue for the time being
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Could we be seeing the following
Eurowings Italy set up. Aircraft moved to eurowings and staff agree to new eurowings contracts ? |
Alitalia starts bankruptcy proceedings
Alitalia to enter bankruptcy proceedings - BBC News
Wonder what one of it's major recent financial backers (cannot name in compliance with forum rules - but read the linked article) makes of this??? Some of their other tie-ups also don't look too clever. Air Berlin, for example. |
Yup, airberlin just posted a 782 million loss for 2016. However, they have diversified a bit with Lufthansa having a very vested interest in that company as they operate 38 aircraft in a wetlease deal for Eurowings and Austrian. Apparently one Mr. Spohr, CEO of said Company, accompanied Mrs. Merkel on her middle east tour, especially to Abu Dhabi on the last weekend.
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Where do Alitalia retirees stand under Italian law? (I've a friend of old, long retired, ex Station Manager many mutual places).
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Report says they have received 7 billion in State Aid over last 10 years. I thought that was not allowed in the EU.
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SOPS - sh - don't tell Trump. :-)
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State aid requires approval by the European Commission. Not quite the same thing as "not allowed".
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I wonder what has happened to Etihad's investment in Alitalia. How much was it overall ? Presumably that is just lost. In which case the Sheikhs will be more than a little aggrieved.
On the other hand, if they have been leasing 8 Heathrow slot pairs to Alitalia, presumably for a song, that is a significant security on the investment. Guess that what remains of Alitalia in the future will be making an increased presence at London City. |
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