Laxintl From United States of America, joined May 2000, 23469 posts, RR: 50 Posted (6 years 8 months 2 weeks 5 days 12 hours ago) and read 1277 times:
'Complex and serious problems' exact heavy cost on Alitalia
Monday March 26, 2007
A year "marked by increasingly complex and serious problems" ended with a stunning €405.2 million ($541.7 million) pre-tax loss for Alitalia, which nevertheless promised that it possesses sufficient cash to cover operational and financial costs "for a period well in excess of 12 months."
The loss widened from a €144.2 million pre-tax deficit in 2005. It would have been larger had the board followed through on a plan to write down the value of the fleet by €400 million. It said it chose not to, "taking into consideration current events."
AZ blamed a 16% rise in fuel costs, its ability to cut operational costs by "only" €8 million, a 40% increase in low-cost carriers' presence in Italy and €100 million in lost revenue owing to labor difficulties for its troubling performance. Full-year operating revenue dropped 1.6% to €4.72 billion against a 2.9% increase in costs to €4.99 billion. The company said spinning off Alitalia Servizi accounted for most of the revenue drop. Operating loss expanded to €265.7 million from 2005's €47.5 million.
OceansWorld From , joined Dec 1969, posts, RR: Reply 1, posted (6 years 8 months 2 weeks 5 days 12 hours ago) and read 1246 times:
On the following PDF document, they say that traffic revenues have been 3,7% higher than 2005, with passengers traffic growing by 1,2%, while cargo transported was up 10,8% compared to the previous year.
Yes, its wonderfull passenger and cargo revenues are up slightly, however does nothing to offset the massive increase in operating cost, pressure from European LCCs and the airlines failure to achieve its cost saving plan during the year.
Quoting Scorpio (Reply 2): The problems at Alitalia remind me of those of our own ill-fated carrier Sabena
And Olympic of Greece.
From the desert to the sea, to all of Southern California
OceansWorld From , joined Dec 1969, posts, RR: Reply 4, posted (6 years 8 months 2 weeks 5 days 9 hours ago) and read 1085 times:
Quoting Laxintl (Reply 3): Yes, its wonderfull passenger and cargo revenues are up slightly,
Well, I don't know if an increase of almost 11% is just a slight increase, but AFAIK, 2006 was their first full year with five dedicated cargo aircraft. I'm curious to see how that part of their business will evolve.
They sort of remind the problems of Air France back in the early nineties, when the airline was almost dead, before being turned around to become the airline we now know. Many things like, market share, LCCs and fuel price were quite different then...
RJ100 From Switzerland, joined Nov 2000, 4112 posts, RR: 31 Reply 8, posted (6 years 8 months 2 weeks 5 days 8 hours ago) and read 967 times:
I also thought it would be forbidden...but you can see how serious the European Union takes it's own laws about forbidden subsidies in the fact that most routes out of Strasbourg are subsidied. It seems when it is about the comfort of politicians, they give a damn about their own laws...
AZ now had many chances but they simply don't get their act together...it's time to let the market play. Other carriers will gladly take up the routes even without billions of tax payers money.