The future of Alitalia

Post by **sn26567** » 02 Sep 2007, 10:17

The board of Alitalia has met on 30 August to redefine a strategy after the failure of the takeover proposals and to avoid losses currently running at 1 million euros per day. Main features:

- 1,000 staff fired (out of 10,000)
- repositioning of main international activities in Rome Fiumicino, at the expense of Milan Malpensa
- cutting of loss-making routes (especially short-haul)
- capital increase of 1 to 1.5 billion euros (who will pay?)

More details

vc-10 · Post by **vc-10** » 03 Sep 2007, 11:52

No-one will pay it, they are collapseing quick.....

Airbus330lover · Post by **Airbus330lover** » 03 Sep 2007, 14:55

Second hand embraer for Bru air before the end of the year ?

b720 · Post by **b720** » 03 Sep 2007, 15:21

routing most AZ routes through FCO is not a bad idea, leaving milan with an extensive european network - with skyteam members' support - to serve the local business community.

Ducatibiker · Post by **Ducatibiker** » 03 Sep 2007, 15:34

If Alitalia goes bust and AZRome Airlines is created, I hope they won't have the R.flex to create a B.flex !

capetown · Post by **capetown** » 03 Sep 2007, 15:40

They could merge with Holy Virgin Express a.k.a. the Vatican's new charter airline

Ducatibiker · Post by **Ducatibiker** » 03 Sep 2007, 15:55

B.less you for this great thought !

Buzz · Post by **Buzz** » 03 Sep 2007, 16:44

IMHO, anyone dumb enough to invest 1-1,5 billion euros in Alitalia deserves the airline...

Stij · Post by **Stij** » 03 Sep 2007, 17:11

vc-10 wrote:No-one will pay it, they are collapseing quick.....

Yes, someone will! The Italian government, again!

Italy is a biiiiiiiiiig European Nation with a load voice in the EU. The Italian Governemnt will bail them out again and the EU will say "this is the very very last time!".

It's abit like buying candy for your kid: The kid goes: "I wanne have Candy", you say "no, you had candy last week", the kid starts screaming and you say "Ok, but it's the very very last time". The kid stops screaming, eats it's candy and we all know what will happen the week after, then it will be the very very very last time.

Why didn't the Belgian Government bail out Sabena then? Belgium isn't as powerful in the EU as Italy, our politicians didn't have the guts to try it (they were more Catholic then the Pope) and they didn't have the money.

Cheers,

Stij

regi · Post by **regi** » 03 Sep 2007, 17:45

Guys, did you see the title of this post: the future of Alitalia.
I thought it was a joke.

Normally I am against capital punishment. But if they look for a volunteer to execute Alitalia, I am a volunteer.
It will be a quick and painless action: the axe.
First of all, it is about money . All those people with positions, jobs which don't add any benefit. All those political coloured employees.

It is also about pride.
It is painful for the Italians to let go their national carrier.

But we Belgians , we went through it. The reborn SN Brussels Airlines is much better than the old Sabena.

So Italy, don't look at the past, look forward and see a bright future ... without Alitalia.

Stij · Post by **Stij** » 03 Sep 2007, 18:42

regi wrote:The reborn SN Brussels Airlines is much better than the old Sabena.

Regi,

May I correct you:

The reborn SN Brussels Airlines WAS much better than the old Sabena.

Now we have to do it with overpriced no frills Brussels Airlines.

Cheers,

Stij

Ducatibiker · Post by **Ducatibiker** » 03 Sep 2007, 21:00

regi wrote:But we Belgians , we went through it. The reborn SN Brussels Airlines is much better than the old Sabena.

No way Jose ! As a passenger, I have to disagree and found the management of SNBA very amateur.

-SNBA managed to weaken its business class product - but contrary to Brussels Airlines, crew could try to accomodate the passengers

-SNBA offered a very bad Frequent Flyer program with no F awards, awards very difficult to redeem on such airlines as British Airways and Iberia - which is no longer a partner. The program was so bad that they decide to lower the qualifications for elite status (Gold and Platinum) for non Belgian residents - totally amateur in the airline industry !

-SNBA delegate the checking-in to third parties - see where it is today. Brussels Airlines made the right decision to take it back but much damage has been done

-and catering went down with SNBA: cheaper and cheaper wine...but we still had Champagne.

TODAY.......15 GR OF COLD PASTA WITH 3 PEAS IN B.FLEX....NO MORE CHAMPAGNE AND 2006 GRAPE FRUIT JUICE THEY DARE TO CALL WINE !

Post by **sn26567** » 04 Sep 2007, 10:29

Alitalia's problems hit passengers in Milan Malpensa

Staff action at Milan's Malpensa airport over Alitalia's plans to scale back operations there stranded thousands of passengers as more than a hundred flights have been cancelled. Pilots are not on strike, but strictly applying safety rules regarding technical maintenance.

Airbus330lover · Post by **Airbus330lover** » 04 Sep 2007, 12:19

Time to rename the subjet in "The no future of alitalia"

b720 · Post by **b720** » 04 Sep 2007, 12:34

Whys so negative? We are talking about the livelihood of thousands of people... I think that the airline has inmproved drastically the last 12 months.. They need to restructure, I hope that will be possible under Alitalia... no need to become AZ Rome Airlines, A-FLEX and A-LITE cabins. They offer excellent connections to some very profitable destinations in Lat Am, and are very strong in the middle east.. they are suffering at the domestic market and on some european destinations. Very heavy competion from easy and Ryanair..and more serious Air One with its Lufthansa connections; nevertheless Air one is not offering a better product to that of AZ. Traditionally Swissair has always been the serious competition for AZ, specially F and C class pax long haul, that has changed now. I hope they can find someone with a vision and some cash to restructure the airline once and for all, they do have the tools.

Airbus330lover · Post by **Airbus330lover** » 04 Sep 2007, 13:16

b720 wrote:Whys so negative?

Perhaps too negative.
But, don't forget that the problems are olds and since 2001, no serious action as been done.
Due to strike, no new captain on board, other airlines declining the purchase and/or a major participation, etc.....
We are talking about 4 years of problems

b720 · Post by **b720** » 04 Sep 2007, 13:31

And I am asking, what is the solution? Folding the airline is the easiest, there are better solutions. Anyone can think of anything? It does not have to follow the Sabena example, that was far from ideal, besides Italy is not Belgium. AZ is not SN. What do you think should be done to fish out AZ from the red? and in which time frame?

Airbus330lover · Post by **Airbus330lover** » 04 Sep 2007, 13:36

Impossible.
For every suggestion cutting jobs or salary, they strike.
In all cases, it will be part of the solution.....
And it's only one problem....

b720 · Post by **b720** » 04 Sep 2007, 14:01

well trimming workforce is not a problem, if those laid off are well compensated (cass injection frop the state to pay off the lay off). I think that getting rid of the 2 hub system should take immediate affect (moving to FCO?).. immediate and very loud (ad campaigns) upgrade of cabin service.. and modernizing their booking engines (AZ online is rather user friendly could become brilliant with a few upgrades)..some of what can be done to start with.. I think they should eventually abandon domestic market except for feeders into their long haul hub, and maybe try franchising small local airlines in places like bologna, firenze, etc.. + leaving regional (in italy) routes connecting to other skyteam memeber hubs to skyteam partner airlines, while concentrating on their own hub.. a good example to follow would be that of SWISS, when they concentrated on their Zurich hub at the expense of their other at GVA.

Airbus330lover · Post by **Airbus330lover** » 04 Sep 2007, 14:29

One hub is part (but little part) of the solution.
But.... once again, try to explain it to people working for AZ in the actually second hub. They will try to avoid such a solution. And once again, you will have a strike in a minimum of time.
The major problem, is to keep the pax.......