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deltadawg
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Italy Scrambles To Save Alitalia Auction

Tue Jul 17, 2007 11:55 pm

Deal going south maybe?

link to Reuters article:
http://www.reuters.com/article/reute..._1013_INVESTING_column%3A_dealtalk

Also, could Airbus step in with some financing (aka US Air) and sweep a 350 order in the next year or so?

[Edited 2007-07-17 16:58:14]
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UAL777UK
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RE: Italy Scrambles To Save Alitalia Auction

Wed Jul 18, 2007 12:37 am

Its a sorry state with AZ. Looking at the mess they are in I wonder if it would not make more sense to let them just liquidate like Swiissair and then a new Alitalia could rise from the ashes, with a reduced workforce, slashed salaries and new contracts, and perhaps run by Air One. It would be painful, but it might be on the only option.
 
kappel
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Joined: Thu Jul 14, 2005 6:48 pm

RE: Italy Scrambles To Save Alitalia Auction

Wed Jul 18, 2007 1:44 am

Quoting UAL777UK (Reply 1):
Its a sorry state with AZ. Looking at the mess they are in I wonder if it would not make more sense to let them just liquidate like Swiissair and then a new Alitalia could rise from the ashes, with a reduced workforce, slashed salaries and new contracts, and perhaps run by Air One. It would be painful, but it might be on the only option.

I'm sorry to say that you are most likely right. Too bad for an airline with such a rich history, but it looks like they are too far gone. Bad management, too many strikes, etc have all made sure that AZ can not turn a profit. If even AF/KL turn them down, as close a partners as they are (remember KLM almost merged with AZ before the BA talks and finally the AF takeover), they really must be in a sorry state. I agree that the only option is to let them liquidate, and start anew. But with no state interest in the airline. And while I am a supporter of unions, the Alitalia unions have gone way too far. They do because they know they can, the government will never obstruct them. This all makes sure that any restructuring of the current AZ is impossible.
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art
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RE: Italy Scrambles To Save Alitalia Auction

Wed Jul 18, 2007 1:46 am

Well I've been to auctions (not selling companies, mind you) where if a lot is of no real interest to anyone, there are no bids and the lot is not sold. Starting to look like the only bidder with any real interest can't afford to buy the lot anyway.

"Alitalia says it can keep going for over a year, but it will soon need more cash after writing down its fleet in May and sinking deeper into the red."

"We do not see Alitalia making a profit in any of the next three years," J.P. Morgan analysts said in a research note.

"If no change in ownership occurs, this group will face a liquidity crisis in due course, in our view."

Badly run, badly worked for, badly molested by the politicians. Any one of these problems could prove fatal on its own. Suffering from all three, death is almost inevitable.
 
UAL777UK
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RE: Italy Scrambles To Save Alitalia Auction

Wed Jul 18, 2007 6:15 am

This could be the final nail in the coofin for AZ!

http://www.reuters.com/article/topNews/idUKL1759629820070717?rpc=44