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Alitalia And The Italy-California Market  
User currently offlineg500 From United States of America, joined Oct 2011, 1033 posts, RR: 0
Posted (2 years 3 months 2 weeks 12 hours ago) and read 3684 times:

Alitalia has served and discontinued FCO-LAX and FCO-SFO a couple of times in the past....

where does it stand right now?.. (they were operating FCO-LAX earlier this year).

Why can't they make it work, specially with a large population of Italian heritage in the San Francisco area?

10 replies: All unread, jump to last
 
User currently offlineOH-LGA From Denmark, joined Oct 1999, 1436 posts, RR: 19
Reply 1, posted (2 years 3 months 1 week 5 days 17 hours ago) and read 2921 times:

I still see AZ operating LAX-FCO in the SkyTeam timetable...

The problems that befall Alitalia are not really unique to AZ. Generally, West Coast - Europe is a difficult thing to manage profitably, even given substantial demand. It always comes back to the full loads don't equal profits explanation. Longer, thinner routes may not hit that right mix of revenue and effective aircraft utilization. It takes more than one frame to operate a West Coast - continental Europe flight, and even then the question is can they fill it up? A few specific reasons that could be considered come to mind:

a) Italian heritage may be now more than one generation back, decreasing VFR (leisure) demand
b) VFR demand is highly price-sensitive and seasonal, which depresses the yields on a non-stop flight and limits year-round operation.
c) Demand can be sufficiently covered by connections over East Coast or European hubs
d) Onward connection potential is limited given geographical location of FCO, or gained only at the expense of lower yields
e) Insufficient business demand = limited high yield traffic

Even fairly busy West Coast - Europe hub-to-hub routes (ie LH SFO-MUC) operate less than daily during the winter. The right mix of demand and yield just isn't there, and can be sufficiently covered by connecting points.



Head in the clouds... yet feet planted firmly on the ground.
User currently offlineSTT757 From United States of America, joined Mar 2000, 16908 posts, RR: 51
Reply 2, posted (2 years 3 months 1 week 5 days 14 hours ago) and read 2807 times:

DL has suspended their JFK-FCO flight this Winter, UA also suspended their EWR-FCO flight this Winter. Both New Jersey and New York have way more people of Italian descent than the entire State of California. It's just the overall state of the economy.


Eastern Air lines flt # 701, EWR-MCO Boeing 757
User currently offlineIndianicWorld From Australia, joined Jun 2001, 3037 posts, RR: 0
Reply 3, posted (2 years 3 months 1 week 5 days 14 hours ago) and read 2776 times:

VFR routes, as stated above, are not exactly recipes for success.

I wouldn't use that alone as a measurement of a routes potential to be profitable.


User currently offlinealitalia744 From United States of America, joined Mar 2000, 4764 posts, RR: 44
Reply 4, posted (2 years 3 months 1 week 5 days 12 hours ago) and read 2685 times:

Quoting STT757 (Reply 2):
DL has suspended their JFK-FCO flight this Winter, UA also suspended their EWR-FCO flight this Winter. Both New Jersey and New York have way more people of Italian descent than the entire State of California. It's just the overall state of the economy.

With DL they can afford to CXL JFK-FCO as their metal-neutral JV partner AZ will continue to operate daily (AZ610/611) and 2x on some days (AZ608/609).

It will be interesting to see how the winter pans out for all carriers given the amount of cuts relative to previous years.



Some see lines, others see between the lines.
User currently offlineflyyul From Italy, joined Jun 2000, 5010 posts, RR: 51
Reply 5, posted (2 years 3 months 1 week 5 days 12 hours ago) and read 2670 times:

Has nothing to do with size of market - but rather the yield / premium vs. leisure mix.

AZ's load factor on LAXFCO is in the high 80s but only seems to make money in the Jun-Sep period where yields reach their highest levels.

The Italy market needs a KLM type operator with very dense config's - bringing overall CASM down to a level where such operations can become profitable. With Alitalia reconfig on the 772 going 10 abreast in Y - this might make this an even more profitable operation for them.


User currently offlinelightsaber From United States of America, joined Jan 2005, 13552 posts, RR: 100
Reply 6, posted (2 years 3 months 1 week 5 days 9 hours ago) and read 2475 times:
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Quoting flyyul (Reply 5):
The Italy market needs a KLM type operator with very dense config's - bringing overall CASM down to a level where such operations can become profitable. With Alitalia reconfig on the 772 going 10 abreast in Y - this might make this an even more profitable operation for them.

That I think sums it up.

I see the West coast US being the domain of 10 across Y in the 777 or 9 across Y in the 787. It simply is not a premium market. For those who demand comfort, pay for J.

Everyone else can cheap out by buying a ticket to an East coast hub and continuing on from there...

Quoting OH-LGA (Reply 1):
e) Insufficient business demand = limited high yield traffic

That is not a good long term trend...

Lightsaber



Societies that achieve a critical mass of ideas achieve self sustaining growth; others stagnate.
User currently offlineViscount724 From Switzerland, joined Oct 2006, 26029 posts, RR: 22
Reply 7, posted (2 years 3 months 1 week 5 days 2 hours ago) and read 2207 times:

Quoting flyyul (Reply 5):
The Italy market needs a KLM type operator with very dense config's - bringing overall CASM down to a level where such operations can become profitable. With Alitalia reconfig on the 772 going 10 abreast in Y

You mention KLM. Their 772s are 9-abreast. Only their 77Ws are 10-abreast.


User currently offlinefactsonly From Montserrat, joined Aug 2012, 1010 posts, RR: 0
Reply 8, posted (2 years 3 months 1 week 4 days 17 hours ago) and read 1959 times:

Interesting that you mentions the KLM B777's for the California-Italy market, as KLM does not operate the B777 to California. In summer 2012 KLM operates:

- B747-400 on AMS-SFO = daily KL605
- B747-400 on AMS-LAX = daily KL601
- MD11 on AMS-LAX = 3x/weekly KL603

What is perhaps more relevant to the discussion is that the SKYTEAM JV operates multiple daily California-Italy flights in Summer and Winter, through AMS, CDG & JFK & ATL:

- California-AMS-VCE on KLM with AZ codeshare
- California-AMS-LIN on KLM & AZ metal
- California-AMS-TRN on KLM & AZ metal
- California-AMS-BLQ on KLM with AZ codeshare
- California-AMS-FLR on KLM & AZ metal
- California-AMS-FCO on KLM & AZ metal
- California-AMS-NAP on KLM & HV metal with KL codeshare
- California-AMS-PSA om KLM & HV metal with KL codeshare
- California-CDG-VCE on AF with AZ codeshare
- California-CDG-LIN on AF & AZ metal
- California-CDG-TRN on AF metal with AZ codeshare
- California-CDG-GOA on AF metal with AZ codeshare
- California-CDG-BLQ on AF metal with AZ codeshare
- California-CDG-FLR on AF metal with AZ codeshare
- California-CDG-FCO on AF & AZ metal
- California-CDG-NAP on AF metal with AZ codeshare
- California-CDG-PSA om AF metal with AZ codeshare
- California-JFK-MXP on AZ/DL
- California-JFK-FCO on AZ/DL
- California-ATL-FCO on DL with AZ codeshare


User currently offlineflyyul From Italy, joined Jun 2000, 5010 posts, RR: 51
Reply 9, posted (2 years 3 months 1 week 4 days 12 hours ago) and read 1833 times:

The point is - KL is the type of operator with very dense configs. As a result they tend to perform in leisure heavy markets or in lower yield ULR markets (see how many AMS-South East Asia ops vs. LH/AF/BA etc).

I think AZ is seeing the light hence why they are going 10 abreast in Y on their 772s. KL will follow in short order on their own 772s


User currently offlinealitalia744 From United States of America, joined Mar 2000, 4764 posts, RR: 44
Reply 10, posted (2 years 3 months 1 week 4 days 12 hours ago) and read 1809 times:

Quoting flyyul (Reply 9):
The point is - KL is the type of operator with very dense configs. As a result they tend to perform in leisure heavy markets or in lower yield ULR markets (see how many AMS-South East Asia ops vs. LH/AF/BA etc).

I think AZ is seeing the light hence why they are going 10 abreast in Y on their 772s. KL will follow in short order on their own 772s

Despite going 10 abreast in Y on their 77E aircraft, the overall capacity of the plane is only +2 seats (from 291 to 293). The aircraft are now less J heavy, indeed (-12 seats) but also less Y- heavy (-10 seats). In turn they added 24 proper Premium Econ (Y+) seats.

The 10-abreast in turn seems to ensure a similar capacity despite the introduction of a 10-abreast Y cabin.



Some see lines, others see between the lines.
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