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skippy777
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Alitalia Wins Courtcase Against KLM

Thu Dec 05, 2002 1:24 am

AMSTELVEEN, December 4, 2002 - The arbitration tribunal deciding the legal dispute between KLM and Alitalia, concerning the termination of their Alliance Agreements on April 28, 2000, issued its award to both parties this afternoon.

The tribunal concluded that KLM’s termination of its Alliance Agreements with Alitalia was not valid. The arbitrators have granted Alitalia’s claim for damages to the sum of EUR 250 million (plus interest), but have dismissed Alitalia’s additional claim to the sum of EUR 43 million.
At the same time, the tribunal granted KLM’s claim that Alitalia should repay EUR 100 million (plus interest) that KLM paid Alitalia in December 1999, as a contribution to development costs for Malpensa Airport, near Milan.
On balance, this results in an obligation for KLM to pay Alitalia EUR 150 million (plus interest and costs).

In an initial response, KLM stated that it is surprised and disappointed at the outcome of this dispute, which Alitalia filed with the arbitration tribunal in August 2000. The implications of the tribunal’s award will have a significant negative effect on KLM’s profit-and-loss account for the current fiscal year. Payment of the claim will have a negative impact on KLM’s current cash position.

Although the outcome of this dispute has no immediate impact on the continuity of the company, KLM will scrutinize the tribunal’s decision and review the situation that has now arisen.
 
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skippy777
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RE: Alitalia Wins Courtcase Against KLM

Thu Dec 05, 2002 1:27 am

That is costing them a lot of money, negative cash position for this year and Alitalia will have a couple of 777 for free.

Bad mistake KLM.
 
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skippy777
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RE: Alitalia Wins Courtcase Against KLM

Thu Dec 05, 2002 1:30 am

Sorry one 777 for free.
 
Alitalia744
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RE: Alitalia Wins Courtcase Against KLM

Thu Dec 05, 2002 1:44 am

Bravo Alitalia! Sorry for KLM Tho.

What does this mean for the upcoming alliance vis a vis Air France/Sky Team for KLM given Alitalia and AirFrance are all but married?

-G
Some see lines, others see between the lines.
 
airblue
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RE: Alitalia Wins Courtcase Against KLM

Thu Dec 05, 2002 2:40 am

That's a great news for Alitalia.

No one here in Italy thought they could take a so large sum. For sure if these money go in the 2002 balance, AZ will post a big profit!!!

 
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DaV
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RE: Alitalia Wins Courtcase Against KLM

Thu Dec 05, 2002 2:57 am

"What does this mean for the upcoming alliance vis a vis Air France/Sky Team for KLM given Alitalia and AirFrance are all but married?"

Air France and Alitalia have an agreement for share exchange before the end of the year, I don't think CEO Spinetta of AF and Mengozzi of AZ will blow it up because of the KLM-AZ dispute. I think the partnership between France and Italy flag carriers will go further in the next year, indipendently (sp?) by KL decision to enter or not in SkyTeam.
Personally I would welcome KL and I hope for a decision in short term.

Rgds

DaV
Two monologues do not make a dialogue
 
LJ
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RE: Alitalia Wins Courtcase Against KLM

Thu Dec 05, 2002 3:07 am

No one here in Italy thought they could take a so large sum. For sure if these money go in the 2002 balance, AZ will post a big profit!!!

You probably mean wiping out the loss they were heading for (uptill Q3 a net loss of EUR 92 million, now converted into a profit).

BTW strange that AZ Group doesn't issue press releases when a very important event happened. Haven't they realised they just received EUR 150 million?
 
LJ
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RE: Alitalia Wins Courtcase Against KLM

Thu Dec 05, 2002 4:15 am

Just in that including intrest KLM will end up paying EUR 170 million. Given their cash of EUR 1.3 billion this wouldn't be a big problem.
 
BBADXB
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RE: Alitalia Wins Courtcase Against KLM

Thu Dec 05, 2002 8:54 am


Well, as I always say: try to avoid flying through airports such as FCO or MXP and avoid that '''thing''' that the letters AZ stand for. Something ALWAYS goes wrong, whether lost or literally wrecked-to-pieces brand new bacalite luggage, or a delay (resulting in a missed connection), or a cancelled flight, or a strike, or weather problems, or whatever... In short, too many coincidences and too many excuse, but not much of a service, nor deeds.

I just thank God, really, that when I overflew Italian airspace, as far as I know, there were no ATC problems. Last year, a local jet was being directed head on into another aircraft, but thank God, a tragedy was averted just in time.

It is really a pity, imo, that such as a reputable airline as KLM has to fork out a considerable amount of money to such a lousy 'thing' (AZ).

It still remains to be seen whether the said 'thing' will still post a loss yet another time.  Wink/being sarcastic  Smile)
 
airblue
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RE: Alitalia Wins Courtcase Against KLM

Thu Dec 05, 2002 9:07 am

I just thank God, really, that when I overflew Italian airspace, as far as I know, there were no ATC problems. Last year, a local jet was being directed head on into another aircraft, but thank God, a tragedy was averted just in time.

You have to say thanks ten time more.

Just today started the process for the scandal of the Linate ATC employers that during working time they used to do a second job or shopping or playing football.
Here the most unbelievable event:

Three years ago during a quite evening suddenly there was a black out of the Ciampino ATC center. Campino controls the central and south-west/island area of the Italian airspace. So they called Linate to replace them. In that moment 11 people supposed to work there. But only two were working cause the others 9 were playing football in a game ATC Linate Vs. (unknown company). So for more than one hour only TWO people were looking more than 50% of the Italian airspace.

But the most unbelievable thing is the these men are still working at LIN ATC.


 
BBADXB
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RE: Alitalia Wins Courtcase Against KLM

Thu Dec 05, 2002 9:29 am


I am very sympathetic towards the people who suffered from such incidents. These things should not be allowed to happen, and for this to be done, proper actions need to be taken (and definitely, God forbids, definitely not waiting for some major happening taking place to do something about this).