ORD Boy 2
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Alitalia In Talks With Swissair And AA

Thu Sep 28, 2000 12:52 pm

Guys check this out

UPDATE 2-Alitalia in talks with Swissair, American-source
Sep 27 2000 5:58PM ET  
ROME (Reuters) - Italian national carrier Alitalia is holding partnership talks with Swissair and U.S. carrier American Airlines, a company source said on Wednesday.
``Alitalia's aim is to link up with American Airlines, which after the collapse of talks with British Airways is looking for a European partner and which already has commercial agreements with Swissair,'' a company source told Reuters.
``(Swissair) is also another company with which Alitalia is in the process of negotiating,'' the source said. Swissair, which is a unit of SAirGroup, signed commercial accords with American Airlines in the summer.
``The negotiations are not at a final stage, but will need more time,'' the source cautioned.
Swissair declined to comment on the report, while American's Chairman and Chief Executive Officer Donald Carty declined to confirm it.
``We don't really comment about those kinds of discussions,'' Carty told Reuters in San Jose, Calif. ``What Alitalia is saying is they are talking to everyone ... We are still in the early days of the formation of these international alliances. Anytime anyone wants to talk to us, American is ready to talk.''
Alitalia has been looking for a partner since a planned tie-up between Alitalia and KLM Royal Dutch Airlines collapsed earlier this year.
At the end of that deal, Alitalia declared it could not go it alone in the European airline industry. Its search for a partner has been at the center of media speculation and conflicting reports ever since.
Just last week, an Alitalia spokesman said the carrier was holding talks with both Air France and Swissair with a view of forging an alliance. An industry source said later Alitalia would choose between the two by the end of October.
But a deal with American Airlines, the world's second-biggest airline, and Swissair would effectively take Air France out of the picture.
Alitalia's executive have said in the past the company was looking for a partner both in Europe and in the United States, though did not specify any U.S. airline. In July, Alitalia denied a press report saying it was in talks with American Airlines.
As for Swissair, sources at the company first talked of negotiations between the Swiss and the Italian airlines in mid-June.
Alitalia Chief Executive Domenico Cempella this week held a series of meetings to discuss the company's industrial plan.
Alitalia said Cempella met on Wednesday with Cabinet Under-secretary Enrico Micheli for ``informal talks,'' but denied he saw Transport Minister Pierluigi Bersani to discuss international alliances.
Alitalia is 53-percent owned by the government and would therefore need its approval before striking an alliance.

I think SAir Group is gonna get in trouble with the EU this time because of the fact that SAir has holdings in two airlines in Italy already
Air Europe and Volaire

ORD Boy2

RE: Alitalia In Talks With Swissair And AA

Thu Sep 28, 2000 1:17 pm

I can't really see Alitalia as a feeder partner for AA in Europe. Firstly, the MXP (Milan Malpensa) "hub" is a ridiculous disaster...transferring planes there is a tragedy and the frequencies to major European business capitals are very poor indeed because AZ have split the flying between Rome and Milan which is an absolutely dumb thing to do.

I would think AZ's culture and piss-poor on-time performance leave a lot to be desired. Don't get me wrong...they are a great airline but I think the KLM disaster will put off any airline trying to link up with AZ.
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RE: Alitalia In Talks With Swissair And AA

Thu Sep 28, 2000 3:47 pm

I don't think Alitalia will form an alliance with Swissair. SAir group own a minority stake in two Italian carrier now merged, Volare Group, and Zurich is too close either to Malpensa and to Rome. The best partner in Europe for Alitalia is Air France and the best US partners are Delta and Continental.
Anyway, KLM didn't drop the alliance with AZ for delays in privatization and the Malpensa trouble but because the Dutch wanted to be dominant in the alliance and Alitalia didn't allowed it. Malpensa has solved almost all its problems and Alitalia is improving its service day by day.
In my opinion Alitalia is one of the best partner still available in Europe for the major alliances and it would fit best in SkyTeam.


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RE: Alitalia In Talks With Swissair And AA

Thu Sep 28, 2000 7:33 pm

the failure of the BA-KLM agreement is opening new doors for Alitalia. D.Cempella is considering 3 opportunities: BA, Swissair and KLM. The Air France option is excluded at the moment because AF wants to create a new hub in Lyon. swissair is now the most probable partner but at the same time an alliance with Ba seems extremely interesting.
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RE: Alitalia In Talks With Swissair And AA

Thu Sep 28, 2000 7:35 pm

Forget AZ and SR. There are many reasons. SR has enough European partners. AZ wouldn't fit at all to Qualiflyer. MPX is too close to Zurich. SAirGroup already has large stakes in two Italien airlines. AZ is still state owened, what SR doesn't like at all. etc. etc....
I think SR is not interested to go with AZ.
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RE: Alitalia In Talks With Swissair And AA

Fri Sep 29, 2000 12:23 am

Italy is ahuge market, but I agree with ZRH. SR is not intrested in a parntership with AZ. Alitalia wouldn't bring any new intercontinental destinations into the Qualiflyer network...so no way SR/AZ!
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RE: Alitalia In Talks With Swissair And AA

Fri Sep 29, 2000 1:20 am

I would like to see it happen, but I doubt it will because of Milan's location. However, BA could start something with AZ. I also heard a rumor that Alitalia is considering joining the oneworld alliance and leaving Continental. What do you think the odds of that one are.

RE: Alitalia In Talks With Swissair And AA

Fri Sep 29, 2000 1:28 am


It says in the article that AF is out of the picture if Alitalia can talk to both AA and SR. Well it looks to me that this journalist kinda forgot that AF has now an alliance with DL. I really don't think that AA/SR outweights DL/AF! Besides on a network complementarity basis DL/AF seems more suitable for Alitalia.

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RE: Alitalia In Talks With Swissair And AA

Fri Sep 29, 2000 7:56 am

I think AZ has chance of partnering with AA due to the "unnoficial brakeup" of AA and BA, I think if AZ were to hook-up with SR/AA, it would free up ZRH and GVE a little bit, but I just don't see AZ getting in with SR and AA, The only chance they really have with SR is with SR dropping Air Europe and Volare, AZ/AA still has a chance though since AA tends to be focusing on Europe expansion and the more European airlines AA can get, the better. Overall, I think AZ has a chance with AA but to get with SR, Volare and Air Europe would have to go, which I kinda hope they do since AZ is a big player in Europe and SR/AZ would be big.So I see AZ/AA but not AZ/SR.
sn330-I think AZ does have a chance with Oneworld due to the rumors that BA might leave because right now, BA is the odd link and Oneworld cannot afford to get rid of AA because they fill in a giant North American gap.If AZ does join, BA will leave.
Give me a break, I created this username when I was a kid...
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RE: Alitalia In Talks With Swissair And AA

Fri Sep 29, 2000 11:39 am

Alitalia and Swiss Air really don't fit well together. SR already has Qualiflyer and two other Italian airlines. Also, Milan and Zurich may be too close. Alitalia would fit best into Sky Team.

RE: Alitalia In Talks With Swissair And AA

Sat Sep 30, 2000 11:18 am

I agree with Steman,
Alitalia has pretty much taken care of all the issues that were "once" considered big problems,- in Malpensa.

And YES there service is getting better as the days go bye....ive been flying on Alitalia for a long time, i've been on them when the cirumstance's were really bad and when it was real good-

Watch out for Alitalia!
Alitalia has a definate chance!
It should be very interesting to see which airline hooks up with them, they won't be disappointed.

p.s - If you need proof-check the amount of empty seats on their 747s out of New York-(there aren't many)


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