€urope Rules Out AF - Alitalia Anti Trust Deal — Civil Aviation Forum

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€urope Rules Out AF - Alitalia Anti Trust Deal

Singapore_Air From United Kingdom, joined Nov 2000, 13711 posts, RR: 21
Posted (10 years 10 months 3 weeks 5 days 19 hours ago) and read 1033 times:

€uropean anti-trust regulators are to rule that the Air France - Alitalia proposal for anti-trust immunity is not to be in its current form.

The €uropean Commission apparently believes that it would stifle competition in the domestic sectors of AF and Alitalia (what is their 2 letter code?)

The ruling deals a blow to loss-making Alitalia and could force British Airways and Iberia to rethink their merger plans.

Last December, Lufthansa and Austrian Airlines had to give up some €uropean slots and cut fares in order to win anti-trust immunity from the €uropean Commission.

Alitalia's CEO, Francesco Mengozzi said the deal with AF would be "the end of the isolation of Alitalia".

More information at the Financial Times website

Anyone can fly, only the best Soar.

8 replies: All unread, jump to last

Go Canada! From United Kingdom, joined Jun 2001, 2955 posts, RR: 12
Reply 1, posted (10 years 10 months 3 weeks 5 days 16 hours ago) and read 997 times:

While the EU is justified in having concerns regarding the fact that af and az would be as one one flights between italy and france, one does wonder how long the eu wishes to carry on blocking airline deals.

If af and az come back with a revised plan and that does not succeed then one has to think that the eu doesnt want to help airlines survive. It is quite clear that az needs a need business plan or it will go bankrupt. If the eu continues this policy and more airlines do go bankrupt then it will be counter-productive. If az collapses the fault can be laid at the door of the eu.

What is interesting to note is that no-one on airlinesr has yet been celebrating this news, in contrast to any ruling against BA which is welcomed with jubilation.

It is amazing what can be accomplised when nobody takes the credit

Airblue From San Marino, joined exactly 12 years ago today! , 1825 posts, RR: 14
Reply 2, posted (10 years 10 months 3 weeks 5 days 11 hours ago) and read 951 times:

Go Canada,

your point is very interesting and I agree with you.
At this time there isn't any decision from EU (only FT article), but if this is true, Alitalia have to change again its business plan. Since AZ had to change 3 business plan in the last two years, due to EU (late) sentence, it really seems EU doesn't want to help airlines survive.
In any case the problem is only about competition on Italy-France routes and not about their alliance (Skyteam).
Skyteam got American Anti-trust immunity also for pacific routes few days ago.

Airblue From San Marino, joined exactly 12 years ago today! , 1825 posts, RR: 14
Reply 3, posted (10 years 10 months 3 weeks 5 days 11 hours ago) and read 960 times:

In a press released Mr. Mengozzi, the Alialia CEO, said about the FT article:

"We haven't received any official note from EU. I'm really surprise to read this news. In any case the AF/AZ membership in Skyteam is not in doubt."

He also talked about the future AF decision to buy up to 3% of AZ share.

One note:

today AF and AZ have a code-sharing agreement on all the France-Italy routes. The competition is really low.
On the main routes, FCO/LIN/MXP-CDG there isn't competition.
This summer they offer on these routes:
FCO-CDG 16 daily in each direction.
LIN-CDG 6 daily
MXP-CDG 10 daily

Go Canada! From United Kingdom, joined Jun 2001, 2955 posts, RR: 12
Reply 4, posted (10 years 10 months 3 weeks 5 days 9 hours ago) and read 936 times:

AZ do need to be a player in the industry, the best way is to be in a strong alliance, as normal the eu cant figure that one out.

It is amazing what can be accomplised when nobody takes the credit

Aamd11 From UK - Wales, joined Nov 2001, 1039 posts, RR: 1
Reply 5, posted (10 years 10 months 3 weeks 5 days 2 hours ago) and read 896 times:

"He also talked about the future AF decision to buy up to 3% of AZ share"

3% doesnt seem worth shouting about! Are you sure its 3 and not 30 maybe?!?!
Either way i dont particularly like either airline, and it cant be that great a loss to the world if AZ goes under... can it?

A^A MD-11

Airblue From San Marino, joined exactly 12 years ago today! , 1825 posts, RR: 14
Reply 6, posted (10 years 10 months 3 weeks 4 days 19 hours ago) and read 878 times:

As first step they talked only about 3%. Only in a long term prospective they will plan a more close cooperation.

Donder10 From Canada, joined Oct 2001, 6659 posts, RR: 24
Reply 7, posted (10 years 10 months 3 weeks 4 days 14 hours ago) and read 859 times:

The EU interferes too much.The EU aviation market needs consolidation.

Keesje From , joined Dec 1969, posts, RR:
Reply 8, posted (10 years 10 months 3 weeks 3 days 12 hours ago) and read 822 times:

Air France and Alitalia (and their owners=governments) finally pushed it to far.
Other EC members probably decided to call it a day (at least they try again).

Will AZ also lose their foreseen subsidy now (the business case has changed)?
http://library.northernlight.com/MB20020619980000012.html?cb=0&dx=1006&sc=0#doc

I always had a strange feeling about tax paid AF & AZ sharing a cake. This is not in interest of French / Italian citizens / business.

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