Alitalia saved by the Government and reborn as ITA Airways

[ticketbuyer]

Mamma Mia! It's deja vu again!
Alitalia is said to be losing EUR500,000 per day and may have to phase out almost twenty A320-200s while cutting about 2,000 jobs.
The decision will be made by the board which will sit soon, maybe this week.
Relations between Etihad and the Italian Government are not good. Etihad accuse the Italian government of not enforcing several contractual clauses e.g. not releasing extra slots at LIN. As a result the proposed 49.9% investment in Air Malta by Alitalia is on the verge of collapse.
There are rumours of Etihad using some kind of 'equity financial instruments' to prop up Alitalia and even investment by Lufthansa to put some more EU money into Alitalia so allowing Etihad to invest more cash and stay below 49%.
The saga continues...

[Yuqu12]

Strange that things are getting worse there. Not good ofcourse, Alitalia is a nice company and it is sad that the Italian government is (slowly) destroying Alitalia. I'm however convinced that the chairmans at Alitalia are smarter: Luca di Montezemolo was able to save Ferrari from the bankruptcy so I think he is capable of doing the same with Alitalia.

[luchtzak]

Alitalia in Rome presenting its latest business plan, 2000 job cuts.

http://uk.reuters.com/article/uk-alital ... KKBN14T0NR

[brusselsairlinesfan]

Alitalia won't invest in Air Malta...

[Charlie Roy]

http://www.independent.ie/business/ryan ... 81722.html

Ryanair and Easyjet being tipped to take over Alitalia shorthaul operations!

[brusselsairlinesfan]

http://www.independent.ie/business/ryan ... 81722.html

Ryanair and Easyjet being tipped to take over Alitalia shorthaul operations!

That would be incredible... Another option seems to be the division of Alitalia into 2 parts :
- "Alitalia 1" would focus on european routes, and would be shaped as a kind of LCC
- "Alitalia 2" would be in charge of longhaul operations

[luchtzak]

Looking for 1.000.000.000 € by the end of the month. Unclear who is going to pay.

https://www.aviation24.be/airlines/alitali ... his-month/

[brusselsairlinesfan]

Could that be a definitive end scenario for Alitalia ?!

[luchtzak]

Could that be a definitive end scenario for Alitalia ?!

Not at all, Alitalia has been saved numerous of times, unlike other carriers.

[Jetter]

Well, it could be though. It's to easy to assume someone will save them every time no matter what. EY donating billions of euro's with hardly any potential to see a return on their investment was already a small miracle. Look at what happened at the old SN a long time ago, many staff thought someone would always save them as well and even went on strike in crucial times. We all know how that ended.

[Yuqu12]

EY did indeed invest quite a lot, but I thought they want to get rid of (a part of) their shares. Why would they invest then another bilion in Alitalia?

[lumumba]

EY did indeed invest quite a lot, but I thought they want to get rid of (a part of) their shares. Why would they invest then another bilion in Alitalia?

Or they invest or they loose everything....

[convair]

Or they invest or they loose everything....

Sure, but they want to streamline the company and they can't because the Italian gvt vetoes any difficult (employment) decision. So it looks like their money has been going down the drain or, rather, subsidizing unsustainable jobs.

[PjVangerven]

They 'll loose everything either way. Their initial investment is a sunk cost.

Or they invest or they loose everything....

[ticketbuyer]

According to the Italian press Alitalia lost 600 million Euros in 2016 and is currently losing two million a day. It has enough cash to survive until mid-April. The latest plan, to be put forward at a Board meeting tomorrow, is for 2000 staff laid off, an average 31% cut in salary for the remainder, 20 A320/319 grounded and an order for 3 new B777 cancelled. CEO Cramer Ball may be joined or replaced by Luigi Gubitosi, the head of the state broadcaster RAI. The unions have called the plan impossible and unacceptable. My sources have said 3000 lay-offs.

[luchtzak]

According to the Italian press Alitalia lost 600 million Euros in 2016 and is currently losing two million a day. It has enough cash to survive until mid-April. The latest plan, to be put forward at a Board meeting tomorrow, is for 2000 staff laid off, an average 31% cut in salary for the remainder, 20 A320/319 grounded and an order for 3 new B777 cancelled. CEO Cramer Ball may be joined or replaced by Luigi Gubitosi, the head of the state broadcaster RAI. The unions have called the plan impossible and unacceptable. My sources have said 3000 lay-offs.

Amazing!

[sn26567]

The latest plan, to be put forward at a Board meeting tomorrow, is for 2000 staff laid off, an average 31% cut in salary for the remainder, 20 A320/319 grounded and an order for 3 new B777 cancelled. CEO Cramer Ball may be joined or replaced by Luigi Gubitosi, the head of the state broadcaster RAI. The unions have called the plan impossible and unacceptable.

If the unions don't accept the plan, they might find out that, instead of 2000 lay-offs, it will be everybody in the company that will be without a job.

[SLM]

But is an average of 31% cut in salary realistic? (especially for ground staff, cabin crew etc)

[Stij]

Probably it's a but comparing apples with oranges, but:

SN has +- 2500 employees for 10 long haul planes 30 medium haul and 7 short haul for 47 in total.
AZ has +- 14000 employees for 25 long haul planes, 76 medium haul and 20 short haul for 121 in total.

Source is Wikipedia...

So, AZ is about 2,5 times larger than SN, but needs 5 to 6 times more personnel... or they need more than double the staff to operate an aircraft.

Probably maintenance and ground handling are outsourced largely at SN compared to AZ, but still... there's your issue...

Stij

[OO-ITR]

Probably it's a but comparing apples with oranges, but:

SN has +- 2500 employees for 10 long haul planes 30 medium haul and 7 short haul for 47 in total.
AZ has +- 14000 employees for 25 long haul planes, 76 medium haul and 20 short haul for 121 in total.

Source is Wikipedia...

So, AZ is about 2,5 times larger than SN, but needs 5 to 6 times more personnel... or they need more than double the staff to operate an aircraft.

Probably maintenance and ground handling are outsourced largely at SN compared to AZ, but still... there's your issue...

Stij

or maybe SN is understaffed... esp for flying crew