LAXintl
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Alitalia In Cash Crisis - Part 2

Tue Nov 12, 2013 3:41 pm

Since our first thread ( Alitalia In Cash Crisis (by LAXintl Sep 3 2013 in Civil Aviation) ) has gotten very long lets continue with a new one here.

Latest news:

o AFKL has taken a €119mil impairment charge for its 25% holdings in AZ.
o AZ board meeting scheduled on Wednesday Nov 13th. Rumored announcement of staff cuts, and discuss recapitalization
o Thursday Nov. 14th deadline for needed €300mil recapitalization.
o AFKL says its unwilling to invest further in AZ unless "strict industrial, social and financial conditions” are agreed to.

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mercure1
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RE: Alitalia In Cash Crisis - Part 2

Tue Nov 12, 2013 4:10 pm

Alitalia says it looking at a " South-East Asian" partner if Air France backs out.

http://finance.yahoo.com/news/alital...k-asian-partner-air-120436016.html

I dont know what their definition of SE Asia is, but I believe common definition is areas like Malaysia, Indonesia, Singapore, Thailand, Vietnam etc.
 
PanHAM
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RE: Alitalia In Cash Crisis - Part 2

Tue Nov 12, 2013 8:12 pm

That's a good Definition for the area.

The problem with a white knight from there is, they cannot pump money endlessly simply because AZ would lose it's citizenship that way. Cash loans would qualify as equity.

Air Cargo Germany got it's AOP revoked that way.
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bobnwa
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RE: Alitalia In Cash Crisis - Part 2

Tue Nov 12, 2013 11:06 pm

Quoting mercure1 (Reply 1):
I dont know what their definition of SE Asia is, but I believe common definition is areas like Malaysia, Indonesia, Singapore, Thailand, Vietnam etc.


Why on earth would an airline from any of those countries want to invest in Alitalia
 
zkeye
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RE: Alitalia In Cash Crisis - Part 2

Wed Nov 13, 2013 5:52 am

Quoting bobnwa (Reply 3):
Why on earth would an airline from any of those countries want to invest in Alitalia

You could also ask why on earth would anyone from anywhere at all would want to invest in Alitalia?
Bring out the gimp
 
miaintl
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RE: Alitalia In Cash Crisis - Part 2

Wed Nov 13, 2013 3:15 pm

I wonder why AZ cannot compete efficiently against low-cost carriers, whilst other Euro heavies can? Is it because AZ has a weak insufficient hub?
 
GCT64
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RE: Alitalia In Cash Crisis - Part 2

Wed Nov 13, 2013 7:11 pm

The board meeting started two hours ago, Reuters reckon:

AFKL plays hardball: no structural changes, no cash, but actually they would like to do a deal
The unions are promising a ""very, very hard" response to job cuts (rather impedes AFKL's aspirations)
The board are likely to avoid the confrontation by putting of any decision and extending the funding deadline (as if AFKL are going to change their mind just because more time passes?)
No one seems to give much credence to the "asian partner"

My guess ... eventually there is a fudge: some cuts, some AFKL money, not much confrontation (token strike), not much political fallout ... and we are back here again soon for "Alitalia In Cash Crisis - Part 145"   

[Edited 2013-11-13 11:12:03]
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mercure1
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RE: Alitalia In Cash Crisis - Part 2

Wed Nov 13, 2013 11:31 pm

Media says following;

** Board approved proposed management business plan revision which calls for job cuts (maybe 2000), and further mediumhaul fleet reduction but the AFKL representatives vote against plan.
** Capital increase deadline moved to Nov.27th.
** Two Italian banks already commit to providing €130mil of needed €300mil.
** AFKL must put in €75 million or have its 25% share holding drop to below 10%
** Italian post is apparent potential investor for €75 million. They have board meeting on Nov.20 to approve
** Italy transport minister say AZ has other partner options, and AFKL must either stay involved or get out of way.
 
Natflyer
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RE: Alitalia In Cash Crisis - Part 2

Thu Nov 14, 2013 1:54 am

Quoting mercure1 (Reply 7):

Looks pretty desperate, because the Italian government can't pump more money into Alitalia directly, to make the Italian Post a "shareholder".

And on the story goes...
 
Azure
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RE: Alitalia In Cash Crisis - Part 2

Thu Nov 14, 2013 2:38 pm

It was expected but it is now confirmed. In a press-release, AFKL announces it will not subscribe to the capital increase.

Ironically the press release is titled : Air France-KLM confirms its commitment to remain a partner of Alitalia

Consequently AFKL stake in AZ will drop to circa 10%. AFKL will loose it veto power over potential new investors, although I doubt there are any interested despite the declarations of the Italian government...

The attitude of the latter has been highly counter-productive. Political interference in a private company can only result in discouraging investors, including the top shareholder.

Eventually AZ will run out of cash again and will be placed under special administration. This might be the only way to solve AZ chore issue, ie its debt.




Quoting bobnwa (Reply 3):
Why on earth would an airline from any of those countries want to invest in Alitalia

KE has invested in CZ. And Italy is a much larger market than the Czech Republic !
However I do not expect SQ, MH, TG or any airline invest a cent in AZ without imposing the same conditions as AFKL...




Quoting miaintl (Reply 5):
I wonder why AZ cannot compete efficiently against low-cost carriers, whilst other Euro heavies can? Is it because AZ has a weak insufficient hub?

AZ is not a "heavy", it is half the size of KL alone. Its cost base is too high compared with the LCCs, and it does not have the financial resources to set up its own LCC, unlike LH with Germanwings or AFKL with Transavia. Btw, AFKL and the LH group are not doing quite well on their regional market...
 
miaintl
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RE: Alitalia In Cash Crisis - Part 2

Thu Nov 14, 2013 5:08 pm

I wonder if had AZ never left its MXP hub for Rome in 2008, would it be facing the crisis it is facing today. Because with a weak hub AZ has nothing to offer. If LIN closed at MXP had remained AZ hub then things would be fine today. I know that that is an over simplistic analysis, but it seems to be the gist of the problem. I am glad this article agrees with me.
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LAXintl
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RE: Alitalia In Cash Crisis - Part 2

Mon Nov 18, 2013 7:28 pm

Unions say AZ will cut approx 2,500 jobs including pilots, cabin and ground staff

Company has meeting scheduled for Thursday with unions.

http://finance.yahoo.com/news/alitalia-cut-2-500-2-190202264.html

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readytotaxi
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RE: Alitalia In Cash Crisis - Part 2

Mon Nov 18, 2013 7:41 pm

A "to big to fail" or a staggering corpse?  
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bennett123
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RE: Alitalia In Cash Crisis - Part 2

Mon Nov 18, 2013 8:19 pm

Any news yet on aircraft and routes to be chopped.
 
JimJupiter
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RE: Alitalia In Cash Crisis - Part 2

Mon Nov 18, 2013 8:24 pm

What are those news?
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bennett123
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RE: Alitalia In Cash Crisis - Part 2

Fri Nov 22, 2013 2:29 pm

http://www.ch-aviation.ch/portal/new...ad-for-help-with-saving-alitalia#!

"Alitalia (AZ, Rome Fiumicino) has reportedly turned its attention back towards Etihad Airways (EY, Abu Dhabi Int'l) in the hopes of finding a strong potential investor. Italy's Teleborsa says Italian premier, Enrico Letta, has dispatched an envoy to Abu Dhabi, under the guise of endorsing Dubai's candidacy for Expo 2020, to resume negotiations with Etihad. The airline's grapevine speaks of a potential 2'500 job cuts of which 1'000 would come from contract non-renewals while the other 1'500 would be straight firings. The bad news continues to roll in for the ailing Italian national carrier after Antitrust regulators fined it EUR120'000 for "unfair business practices."

It seems as if they are going to try to involve Etihad.

However, my understanding is that normal limits on non EU ownership would apply.

Also, doubtless Etihad will insist on cuts at AZ as well.

Promises to be interesting.
 
ghost77
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RE: Alitalia In Cash Crisis - Part 2

Fri Nov 22, 2013 9:40 pm

If no cash is given on Nov 27th will AZ collapse?

Will the government let AZ die?

What are the other Italian carriers?

g77
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UALWN
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RE: Alitalia In Cash Crisis - Part 2

Fri Nov 22, 2013 10:37 pm

Quoting ghost77 (Reply 16):
If no cash is given on Nov 27th will AZ collapse?

Come on, I have an BCN-FCO flight on AZ booked for Nov. 28th!
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burchfiel
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RE: Alitalia In Cash Crisis - Part 2

Sat Nov 23, 2013 3:14 am

The Pope uses AZ more than any other airline -- if Alitalia fails what is he going to do? Perhaps travel on Ryanair, since he's trying to make the Papacy a simpler, less ornate institution.
 
laca773
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RE: Alitalia In Cash Crisis - Part 2

Sat Nov 23, 2013 6:44 am

Perhaps at this point, AZ needs to file bankruptcy the way SR did. They came back as LX, and have been hanging in there. It sounds like the unions and employee groups are not open to changes, and survival wage cuts.
To survive, they need to start over from the ground up. I can see AFKL stepping in, and evolve the management team to get them moving in the right direction.
 
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RE: Alitalia In Cash Crisis - Part 2

Sat Nov 23, 2013 7:32 am

Have you ever seen the Alitalia HQ in Rome? I think it's bigger than the one of AA. Why a can of coke cost to AF/KLM 2 euros and 5 to AZ? Why the stop to fly the planes they own and fly the planes they lease? Why someone would buy an airline Made to loose money and is not indipendent by politic games??? I'm so tired to see this every day. I really hope one day someone will not tolerate this behaviour anymore!!!
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OzarkD9S
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RE: Alitalia In Cash Crisis - Part 2

Sat Nov 23, 2013 11:51 am

Quoting laca773 (Reply 19):


Perhaps at this point, AZ needs to file bankruptcy the way SR did. They came back as LX, and have been hanging in there.

Not that simple in the case of SR/LX. AZ would need to liquidate while Air One might emerge as the new "Italiana" or something along those lines. IF there is enough separation between AZ and Air One at this point. I admit I'm not really up on the AZ/Air One corporate structure. If Air One is still a separate legal entity it "might work". Of course they'll be riots in the streets but.....

And for the record SR did not come back, a new national carrier emerged using the LX certificate and structure. Not sure if that could happen the same way in Italy. Perhaps someone with more knowledge on Italian corporate law could enlighten us.
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Azure
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RE: Alitalia In Cash Crisis - Part 2

Sat Nov 23, 2013 2:14 pm

Quoting LAXintl (Reply 11):
Unions say AZ will cut approx 2,500 jobs including pilots, cabin and ground staff

So the Italians authorities did their utmost to discourage AFKL to takeover AZ out of fear it would cut jobs. They are now left without an international partner (and struggling to find one) but they still have to cut jobs. Very successful move.



Quoting bennett123 (Reply 15):
It seems as if they are going to try to involve Etihad.

However, my understanding is that normal limits on non EU ownership would apply.

Also, doubtless Etihad will insist on cuts at AZ as well.


   So far EY has remained silent since its acquisition of Darwin Airlines.
In fact the Italian government and AZ want the cash but also want to keep control of the airline. Unsolvable equation.



Quoting ghost77 (Reply 16):
If no cash is given on Nov 27th will AZ collapse?

Will the government let AZ die?

AZ has secured only € 130 Mi so far (out of the € 300 Mi it seeks to obtain).
Meanwhile AZ has started to sell its real estate, surely not a good sign.
If it fails to get the € 300 Mi by Nov 27th, its chances of survival are limited to a couple of months.
The main issue is the abysmal debt of AZ. Even if the airline was operationally profitable it could not pay back the interests of the loans.
I can think of 2 scenarios :
- AZ debt is restructured with the help of the Italian government. It would make it more appealing for an investor. AFKL (or EY) could come back under the condition it is assured to get the full control of the airline (with further job cuts).
- The Italian government does not write off the debt and AZ will die, sooner rather than later. I know they are working at building a stand-alone business model for the airline. Good luck to them !
 
bennett123
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RE: Alitalia In Cash Crisis - Part 2

Sat Nov 23, 2013 2:55 pm

What real estate have they sold?.

Perhaps it just wasn't required.
 
Azure
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RE: Alitalia In Cash Crisis - Part 2

Sat Nov 23, 2013 3:40 pm

Quoting bennett123 (Reply 23):
What real estate have they sold?.

Perhaps it just wasn't required.

Perhaps.
Source (in French) : http://www.aerobuzz.fr/spip.php?article4402

Quote:
The fact remains that Alitalia, concerned about its immediate financial difficulties, is seeking by all means to find cash. It has chosen to sell part of its real estate, various buildings estimated sixty million euros. This choice has not been announced publicly, but appears in the classifieds of the latest issue of U.S. magazine Aviation Week. Offers must be submitted no later than March 21. That speaks volumes about the seriousness of the situation but also indicates Alitalia hopes to be still alive at the end of winter.
 
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lollomz
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RE: Alitalia In Cash Crisis - Part 2

Sat Nov 23, 2013 5:59 pm

Quoting OzarkD9S (Reply 21):

Air One is part of AZ.....
[url="http://www.diecastmodelaircraft.com/collection/Lollomz"]Image[/url]
 
ghost77
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RE: Alitalia In Cash Crisis - Part 2

Sat Nov 23, 2013 10:53 pm

Quoting Azure (Reply 22):
die, sooner rather tha

Thanks for the info!

Selling real state as last resort.. ok, 60M more... could work!!! But after this...? There won't be more properties!

What a sad thing to see this beautiful airline go belly up! Maybe time to start from scratch or return planes and improve things and later time to think about expansion!

g77
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miaintl
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RE: Alitalia In Cash Crisis - Part 2

Sun Nov 24, 2013 7:12 am

I wonder if AZ goes bankrupt, whether a startup airline will follow? You know kind of like the SR/LX case.
 
GCT64
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RE: Alitalia In Cash Crisis - Part 2

Wed Nov 27, 2013 11:36 am

Quoting miaintl (Reply 27):
I wonder if AZ goes bankrupt, whether a startup airline will follow?

I'm not at all sure anyone in Italy will get the chance to fill the AZ void:
VY (aka IAG) has announced major expansion at FCO from S14: 8 aircraft based, 24 new routes (in addition to 8 already served) - 7 of these will be domestic routes, all major AZ routes
FR has announced major expansion at FCO starting next month: 6 aircraft to be based, 3 new domestic routes (in addition to 6 served from CIA - to move to FCO)
EZY has announced a base at NAP from S14, reaching 20 routes / 130 flights per week from NAP

Rather ominously, and in a style that will be familiar to scholars of Rome from the time of Caesar, FR added:

"Ryanair also confirmed that it will increase these daily frequencies if Alitalia cuts back. Ryanair has also offered to use its low fare flights to feed into Alitalia’s international network to/from Rome Fiumicino. Ryanair has for example offered to carry Alitalia passengers at one-way fares from just €50 which will enable Alitalia to significantly reduce the costs of its feed traffic on these domestic routes to Rome Fiumicino. Ryanair has also requested a meeting with Alitalia to examine any other opportunities which may exist for co-operating with and assisting Alitalia in its current restructuring."
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Azure
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RE: Alitalia In Cash Crisis - Part 2

Wed Nov 27, 2013 12:51 pm

Quoting GCT64 (Reply 28):
I'm not at all sure anyone in Italy will get the chance to fill the AZ void:

The void after the possible bankruptcy of AZ would be filled by the LCCs on short-haul. We are just seeing the beginnings. I am not sure whether these LCCs are betting on the demise of Alitalia or putting more pressure to accelerate its fate...Anyway, they will be the clear winners.
For the long-haul business, the Euro majors will continue to feed their respective hubs and the non-European airlines (EY, EK, SQ, etc) will increase frequency and capacity if needed.
We already discussed these possibilities in part I of this thread.

Like you, I am not sure this scenario would leave space for a start-up airline based in Italy.

However AFKL can still play a role. It has written-off its stake in Alitalia but nonetheless remains a shareholder. Should AZ run out of cash again (very likely), AFKL (but it can be another investor too) could negotiate a deal with the other shareholders and the Italian government to save whatever could be saved (the brand, some jobs, slots, etc.). I am pretty sure the government of PM Letta wants to avoid the total demise of the flag carrier.

Today Nov 27th is the deadline for the shareholders to say whether they subscribe to the capital increase.
If AZ succeeds to find € 300 Mi as planned, it can survive until next summer.
If not, its lifespan in its current form will be drastically reduced.
Last time I checked, AZ had secured only € 130 Mi out of the € 300 Mi.
We'll see !



Quoting GCT64 (Reply 28):
Rather ominously, and in a style that will be familiar to scholars of Rome from the time of Caesar

Lol ! You are right, it sounds very imperial !
But there is more to it. It is a clear change of strategy for FR, as we are discussing here : Ryanair Planning Change In Strategy? (by factsonly Nov 14 2013 in Civil Aviation)
 
senatorflyer
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RE: Alitalia In Cash Crisis - Part 2

Thu Nov 28, 2013 2:25 pm

So the deadline was yesterday but so far we have not heard anything... Good or bad in your opinion?
 
Azure
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RE: Alitalia In Cash Crisis - Part 2

Thu Nov 28, 2013 2:52 pm

Quoting senatorflyer (Reply 30):
So the deadline was yesterday but so far we have not heard anything... Good or bad in your opinion?

Well, good or bad news, it all depends on your expectations  

More seriously, AZ said it would release the result of the cash call this morning. The absence of information so far, from Alitalia and the Italian press, may indicate things did not turn well.

I suspect the new shareholder, the state-owned Poste Italiane, is reluctant to confirm its participation in the capital increase that should amount to € 75 Mi.

The issue here is the compliance with the EU regulations on state aid.
 
senatorflyer
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RE: Alitalia In Cash Crisis - Part 2

Thu Nov 28, 2013 3:22 pm

 
DDR
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RE: Alitalia In Cash Crisis - Part 2

Thu Nov 28, 2013 3:37 pm

Quoting Azure (Reply 29):
The void after the possible bankruptcy of AZ would be filled by the LCCs on short-haul. We are just seeing the beginnings. I am not sure whether these LCCs are betting on the demise of Alitalia or putting more pressure to accelerate its fate..

This is very true. Soon there will be no markets left for AZ    The other carriers are like sharks and they have smelled the blood in the water. I believe it is just too late for Alitalia. It is sad to see another airline from my youth go away but the world did survive the loss of Sabena and Swissair and it will go on without Alitalia.
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Azure
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RE: Alitalia In Cash Crisis - Part 2

Thu Nov 28, 2013 4:24 pm

Quoting senatorflyer (Reply 32):
There we go. Does not sound too good I think...

http://uk.reuters.com/article/2013/1...31128

I think so too. (thanks for the link)
- AZ secured only € 173 Mi (when it planned on € 300 Mi)
- The cash call will continue with a second phase. The deadline was postponed once and now we learn there will be a second phase. It indicates the so-called first phase failed, despite the optimistic wording.
- There is not a word about Poste Italiane that might not be part of the deal (yet).

With this capital increase of € 173 Mi, AZ can survive until March I believe. So we can keep this thread open  .



Quoting DDR (Reply 33):
I believe it is just too late for Alitalia.

Could be.
I wonder if AZ did not make a mistake when it turned down FR's offer yesterday. Its short-haul business is loss-making, its long-haul is profitable. A partnership with FR as a feeder of its intercontinental network would have made sense IMHO. This alliance between an ailing Legacy and an aggressive LCC would have been a revolution in the world of commercial aviation ! Of course it would have resulted in a leaner Alitalia only focusing on long-haul (and it would have face lots of opposition in the country), but the business model can work.
 
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viasa
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RE: Alitalia In Cash Crisis - Part 2

Fri Nov 29, 2013 9:05 am

Another report about Alitalia's fleet. They were down by nearly 20%: http://www.ch-aviation.ch/portal/new...as-it-parks-nearly-20-of-its-fleet

The active A321 fleet is down by just nine aircrafts. Will they phase-out the A321s?
 
OOer
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RE: Alitalia In Cash Crisis - Part 2

Fri Nov 29, 2013 11:02 am

Alitalia is trying to shrink to profitability and making the worst possible business decisions (like leaving MXP for FCO) while also raking up more and more debt.

Put AZ out of it's misery and let other airlines fill the void.
 
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Aquila3
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RE: Alitalia In Cash Crisis - Part 2

Mon Dec 09, 2013 6:08 pm

News (ANSA) say that tomorrow the new business plan will be presenteted. It will be hard to swallow, 1900 layoffs, between them 280 pilots and 350 F.A.
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bennett123
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RE: Alitalia In Cash Crisis - Part 2

Mon Dec 09, 2013 9:52 pm

Given that most aircraft have about 2 FA per pilot, this does not seem to stack up.
 
CPHFF
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RE: Alitalia In Cash Crisis - Part 2

Tue Dec 10, 2013 8:02 am

Reading through the posts, there seem to be a lot of users on here that believe that the biggest part of AZ's problem is that they didn't keep and expanded MXP as a hub. I'm sure that some of the problems can be attributed to that.

How ever, it is my (and several colleagues) view that their appauling Customer Service and flight experience is a big contributor as well. I don't beleive they get any repeat business from non-Italians unless it is the only flight option available.

Also, their staff is very unproductive. Have you ever been at an Alitalia counter in FCO or MXP. 3-4 women behind the counter, of which 1-2 are actually serving customers. The others seem to be chatting with each other. Extremely frustrating when you've just had your flight cancelled. I feel the employees including cabin crew have a serious "mañana attitude", and we as passengers should be damn lucky that we are allowed to fly with them.
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UALWN
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RE: Alitalia In Cash Crisis - Part 2

Tue Dec 10, 2013 9:09 am

Quoting CPHFF (Reply 39):
How ever, it is my (and several colleagues) view that their appauling Customer Service and flight experience is a big contributor as well.

I have flown a few segments with AZ in the last couple of months and I cannot agree. Flight experience and customer service were OK, in line with most other European legacies, including SK, for instance, which I also flew on earlier in the year.

Quoting CPHFF (Reply 39):
I don't beleive they get any repeat business from non-Italians unless it is the only flight option available.

Why would Italians behave differently from non-Italians?
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CPHFF
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RE: Alitalia In Cash Crisis - Part 2

Tue Dec 10, 2013 11:38 am

Quoting UALWN (Reply 40):
Why would Italians behave differently from non-Italians?

My Italian colleagues and many other Italians fly AZ because of loyalty and "National Pride", just like a lot of Germans prefer Luftwaffe...........

Sorry if I was unclear UALWN
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art
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RE: Alitalia In Cash Crisis - Part 2

Tue Dec 10, 2013 12:49 pm

"Elle a en effet levé les 225 millions nécesaires pour que la Poste italienne mettre de son côté 75 millions d’euros, selon une source anonyme citée par le Wall Street Journal."

http://www.air-journal.fr/2013-12-10...et-225-millions-deuros-592286.html

According to this article dated 10 Dec, Alitalia has raised the 225 million euros necessary for Poste Italienne to put in 75 million euros according to an anonymous source cited by Wall Street Journal.
 
PanHAM
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RE: Alitalia In Cash Crisis - Part 2

Tue Dec 10, 2013 2:13 pm

Quoting CPHFF (Reply 41):
just like a lot of Germans prefer Luftwaffe...........

with a market share of just about 35% that would mean something like 2/3rds of Germans using air Services have gone AWOL!

So much to nationalism.
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UALWN
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RE: Alitalia In Cash Crisis - Part 2

Tue Dec 10, 2013 3:02 pm

Quoting CPHFF (Reply 41):
My Italian colleagues and many other Italians fly AZ because of loyalty and "National Pride"

Really? Do you think that Italians would stay loyal to a dismal airline?
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JimJupiter
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RE: Alitalia In Cash Crisis - Part 2

Tue Dec 10, 2013 3:18 pm

Quoting CPHFF (Reply 39):
there seem to be a lot of users

Actually not that many, if you look closely.  
One is born, one runs up bills, one dies.
 
bennett123
Posts: 7441
Joined: Sun Aug 15, 2004 12:49 am

RE: Alitalia In Cash Crisis - Part 2

Tue Dec 10, 2013 10:25 pm

www.ch-aviation.ch is reporting an investment of e15M by Antonio Percassi, through his company Odissea Holdings.

AZ seem to be getting a lot of (mostly Italian) investors come on board.
 
tyler81190
Posts: 720
Joined: Fri Feb 13, 2009 10:28 am

RE: Alitalia In Cash Crisis - Part 2

Tue Dec 10, 2013 11:04 pm

Is it a bad sign when your joint venture partners/alliance members (ex... DL, VS, KE etc) do not even think about offering to help?

Have most of SkyTeam basically just called AZ a lost cause?
 
art
Posts: 2679
Joined: Tue Feb 08, 2005 11:46 am

RE: Alitalia In Cash Crisis - Part 2

Tue Dec 10, 2013 11:19 pm

Quoting bennett123 (Reply 46):
www.ch-aviation.ch is reporting an investment of e15M by Antonio Percassi, through his company Odissea Holdings.

It's a mystery to me why AZ would attract any funds from serious investors. As I understand things the capital secured will stop AZ going bust in the immediate future but will be wiped out by ongoing losses leaving AZ requiring more funds in a few months to avoid it going bust.
 
Azure
Posts: 624
Joined: Mon Dec 17, 2012 8:34 pm

RE: Alitalia In Cash Crisis - Part 2

Wed Dec 11, 2013 9:51 am

Quoting art (Reply 42):
According to this article dated 10 Dec, Alitalia has raised the 225 million euros necessary for Poste Italienne to put in 75 million euros according to an anonymous source cited by Wall Street Journal.

This seems to be confirmed (subject to a formal announcement by AZ).
However the cash call saga has shown the difficulties for AZ to attract investors, and even to persuade its own shareholders.



Quoting bennett123 (Reply 46):

www.ch-aviation.ch is reporting an investment of e15M by Antonio Percassi, through his company Odissea Holdings.

Percassi has close business ties with the bank that is going to become AZ top shareholder, Intesa San Paolo. This latter has reportedly granted € 150 Mi in loans to Percassi...
Source
"Combinazione" or creativity, it's yours to decide...



Quoting tyler81190 (Reply 47):
Is it a bad sign when your joint venture partners/alliance members (ex... DL, VS, KE etc) do not even think about offering to help?

Have most of SkyTeam basically just called AZ a lost cause?

AFKL has offered to help before the cash call (it was ready to inject hundreds millions of euros) but its conditions were not accepted by the Italians. The issue is the abysmal debt - let alone political interference.
The trouble is getting worse now that AZ lenders will be its biggest shareholders after the capital increase.

Alitalia as a stand-alone carrier is a lost cause, yes.
With a major partner, it has potential. Italy remains the 4th European market in commercial aviation.

As for the Skyteam partners, the major ones have already invested in other European airlines (DL/VS - KE/OK).
SU does not have the financial resources.
I do not see AM, VN or GA...
May be the Chinese airlines, like HU in ZI. But they do not seem in a hurry.

I do not see any other possible industrial partners than AFKL (or EY).



Quoting art (Reply 48):
As I understand things the capital secured will stop AZ going bust in the immediate future but will be wiped out by ongoing losses leaving AZ requiring more funds in a few months to avoid it going bust.

Give it 6 months, not more.
The CEO rules out to cut jobs, not to displease the unions.
Source : Reuters

Quote:
Alitalia's management presented details of its revised industrial plan to trade unions on Tuesday, reassuring them that feared layoffs of thousands of people would not be part of its moves to return the airline to profitability.

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