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mercure1
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Alitalia board approves revised business plan

Thu Dec 22, 2016 7:15 pm

Alitalia’s board of directors today approved the new phase of the airline’s business plan to guide airline called ‘Right Size and Right Shape’

The main focus of future activities will be to change the current business model by:

• Developing further the long-haul flight network
• Reworking the narrow-body business
• Reducing costs and improve productivity to match competitors
• Re-evaluating joint venture agreements
• Deepening existing airline partnerships and look to add new commercial relationships
• Leveraging recent large investments in technology to compete, and also drive additional revenue
• Reducing manpower numbers to create the ‘right size, right shape’ for the business

Under the ‘Right Size and Right Shape’ program, goal is that organisation can operate efficiently in a highly competitive environment, while minimising redundancies and maximising productivity.

No final decisions on staff reductions have yet been taken and the management team will now begin consultation with employees and their trade union representatives.

More details of the business plan will be presented in January to Alitalia’s workforce.

Press release
http://corporate.alitalia.it/en/media/p ... 12-22.html


Lest see what happens with this Italian soap opera.
In many ways its a repudiation of what has been tried the last two years since company was relaunched.
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enilria
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Re: Alitalia board approves revised business plan

Thu Dec 22, 2016 7:25 pm

It is fairly explicit that they want to exit the Delta joint venture. I know the reason they want to do that is because Delta has veto power over long haul capacity adds to the USA, and long haul to USA is the best Euro market due to the lack of capacity the JVs enforce.
 
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LAXintl
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Re: Alitalia board approves revised business plan

Thu Dec 22, 2016 7:27 pm

mercure1 wrote:

• Developing further the long-haul flight network
• Reworking the narrow-body business


Rather interesting 180 degree change in network focus.

The previous plan focused primarily on building European flying, fighting LCCs and maintaining marketshare including domestically.

Now it seems they have conceded the loss on shorthaul flying and now will focus on longhaul, quite similar to what Air Berlin will try to do.
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mercure1
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Re: Alitalia board approves revised business plan

Thu Dec 22, 2016 7:34 pm

enilria wrote:
It is fairly explicit that they want to exit the Delta joint venture. I know the reason they want to do that is because Delta has veto power over long haul capacity adds to the USA, and long haul to USA is the best Euro market due to the lack of capacity the JVs enforce.


Yes after cutting the AF/KL European JV, other than EY the only remaining joint venture is the Skyteam Atlantic partnership.

I did read in a news story few weeks ago that AZ wanted to grow in the US but was hampered by capacity limits especially during winter months. For example the CEO wanted to fly to California year-round but could not based on the JV capacity allocation method.
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LAXintl
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Re: Alitalia board approves revised business plan

Thu Dec 22, 2016 7:59 pm

Well that's one of the issues with these Atlantic JVs.

Airlines lose the ability to individually plan and manage their capacity in favor of larger group deciding. And obviously these decisions are often driven by the bigger players, not the little guys interest.
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vhtje
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Re: Alitalia board approves revised business plan

Thu Dec 22, 2016 8:13 pm

enilria wrote:
It is fairly explicit that they want to exit the Delta joint venture. I know the reason they want to do that is because Delta has veto power over long haul capacity adds to the USA, and long haul to USA is the best Euro market due to the lack of capacity the JVs enforce.


Wouldn't that threaten feeds and connections at the US end? I mean: would they not be heavily reliant upon DL for feeding their US flights?
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senatorflyer
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Re: Alitalia board approves revised business plan

Thu Dec 22, 2016 8:19 pm

Didn't Alitalia say they are thinking of terminating the Skyteam membership? If so will that also terminate the JV?
 
Waterbomber
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Re: Alitalia board approves revised business plan

Thu Dec 22, 2016 8:21 pm

TATL is not a good market. It's already overcrowded.
The cheap Euro will be attractive for American tourists, but U.S. carriers are better positioned to take advantage of it from a marketing perspective.
The entry price tag is quite high too, it takes a while to get enough seats filled to break even on a new route.
Their soft product is inferior to all airlines in terms of IFE, food quantity and cabin service.
Their ground services have improved from the old days, but still worse than LCC service.

AZ is doomed no matter what it does, but as long as the Emirs of the UAE are happy to drain money down the toilet, I'm happy too.
Last edited by Waterbomber on Thu Dec 22, 2016 8:22 pm, edited 1 time in total.
 
TomFoolery
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Re: Alitalia board approves revised business plan

Thu Dec 22, 2016 8:22 pm

The point of view of AZ was that the AF/KL Joint Venture was stacked against AZ, and favored AF, due to the existing larger network that AF had. It does not surprising that with the new blood of AB and EK, AZ feels that DL is suppressing growth opportunity in the US. When DL was providing feed into FCO and MXP, AZ was happy. Now that EK and AB are in the mix, AZ has a new shiny object to focus on.

I hope they find what they are looking for with EK and friends. They are a better airline than what they were in the past, but they need to sustain the momentum.

When their staff have gone through a transformative renewal just about every 3-5 years, I wouldn't be surprised if they weren't just a little bit jaded by now.
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LJ
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Re: Alitalia board approves revised business plan

Thu Dec 22, 2016 8:32 pm

TomFoolery wrote:
The point of view of AZ was that the AF/KL Joint Venture was stacked against AZ, and favored AF, due to the existing larger network that AF had. It does not surprising that with the new blood of AB and EK, AZ feels that DL is suppressing growth opportunity in the US. When DL was providing feed into FCO and MXP, AZ was happy. Now that EK and AB are in the mix, AZ has a new shiny object to focus on.

I hope they find what they are looking for with EK and friends. They are a better airline than what they were in the past, but they need to sustain the momentum.

When their staff have gone through a transformative renewal just about every 3-5 years, I wouldn't be surprised if they weren't just a little bit jaded by now.


I reckon you mean EY instead of EK?
 
Varsity1
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Re: Alitalia board approves revised business plan

Thu Dec 22, 2016 9:23 pm

I wonder if they would consider consolidation around one hub.
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GianiDC
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Re: Alitalia board approves revised business plan

Thu Dec 22, 2016 10:05 pm

Varsity1 wrote:
I wonder if they would consider consolidation around one hub.


Well I guess they are pretty much sitting between chairs. The most money and business is in the north aka MXP. One problem is having LIN in the same city which in itself attracts the business traveler more due to better location. But they can´t focus to much on LIN because it is quite heavily slot restricted. In addition on having another rival airport in vicinity the infrastructure in MXP is not good and not ideal for hub operation.

While having the business in the north most of the tourists go to FCO.

But they have to change something drastically in a very short time if they want to survive.
 
georgiabill
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Re: Alitalia board approves revised business plan

Thu Dec 22, 2016 10:36 pm

Is AZ still considering adding 77W'S? Are they coming from EY or a lessor? I would have thought 789'S or A350'S would be a better option.
 
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adamh8297
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Re: Alitalia board approves revised business plan

Thu Dec 22, 2016 11:28 pm

vhtje wrote:
enilria wrote:
It is fairly explicit that they want to exit the Delta joint venture. I know the reason they want to do that is because Delta has veto power over long haul capacity adds to the USA, and long haul to USA is the best Euro market due to the lack of capacity the JVs enforce.


Wouldn't that threaten feeds and connections at the US end? I mean: would they not be heavily reliant upon DL for feeding their US flights?


Not if they find a new friend across the pond.. hint "JetAzzurri"
Airlines flown: A3, AA, AC, AF, AM, BA, B6, CA, CO, CX, DL, EA, EL, IB, LH, MI, MQ, NH, NW, NZ, OU, PE, QF, S4, SQ, TP, UA, US, VS, WE, WN

2019: CX BOS-HKG, WE HKG-HKT, CA HKT-PEK-EWR, B6 EWR-BOS
 
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enilria
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Re: Alitalia board approves revised business plan

Thu Dec 22, 2016 11:58 pm

LAXintl wrote:
Well that's one of the issues with these Atlantic JVs.

Airlines lose the ability to individually plan and manage their capacity in favor of larger group deciding. And obviously these decisions are often driven by the bigger players, not the little guys interest.

mercure1 wrote:
enilria wrote:
It is fairly explicit that they want to exit the Delta joint venture. I know the reason they want to do that is because Delta has veto power over long haul capacity adds to the USA, and long haul to USA is the best Euro market due to the lack of capacity the JVs enforce.


Yes after cutting the AF/KL European JV, other than EY the only remaining joint venture is the Skyteam Atlantic partnership.

I did read in a news story few weeks ago that AZ wanted to grow in the US but was hampered by capacity limits especially during winter months. For example the CEO wanted to fly to California year-round but could not based on the JV capacity allocation method.

I read the statement about "deepening airline partnerships" coupled with the comments about ending the (DL) JV to mean they want to still code share with DL, but get rid of the JV. That's a pipe dream as DL will immediately drop them. B6 and AS are the next most likely partners.

This all makes me think that when WN can finally code share (if we aren't all dead by then) it will unlock all sorts of new feed options for all the international carriers and be a major setback to existing legacy US3 long-haul intl hubs.

Waterbomber wrote:
TATL is not a good market. It's already overcrowded.

Delta said on the recent quarterly call that Europe was good absent a few terrorism affected markets.
 
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BobPatterson
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Re: Alitalia board approves revised business plan

Fri Dec 23, 2016 2:08 am

enilria wrote:
This all makes me think that when WN can finally code share (if we aren't all dead by then) it will unlock all sorts of new feed options for all the international carriers and be a major setback to existing legacy US3 long-haul intl hubs.


Please help me to understand why Southwest cannot code share at this time. DOJ problems?

Thanks.
Facts are fragile things. Treat them with care. Sources are important. Alternative facts do not exist.
 
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LAXintl
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Re: Alitalia board approves revised business plan

Fri Dec 23, 2016 3:30 pm

BobPatterson wrote:
Please help me to understand why Southwest cannot code share at this time. DOJ problems?


Its technology issues at SWA
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klakzky123
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Re: Alitalia board approves revised business plan

Fri Dec 23, 2016 3:38 pm

BobPatterson wrote:
enilria wrote:
This all makes me think that when WN can finally code share (if we aren't all dead by then) it will unlock all sorts of new feed options for all the international carriers and be a major setback to existing legacy US3 long-haul intl hubs.


Please help me to understand why Southwest cannot code share at this time. DOJ problems?

Thanks.


Their reservation system is ancient (there are still mainframes being used in production). The IT investment to develop proper interline and codeshare connections isn't worth the effort. They're migrating to a modern system during the 1st half of 2017 which will facilitate a bunch of changes for them beyond just interline/codeshare (think more ancillary opportunities, cabin classes, seat upgrades, better merchandising channels, etc..)
 
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Re: Alitalia board approves revised business plan

Fri Dec 23, 2016 3:59 pm

enilria wrote:
I read the statement about "deepening airline partnerships" coupled with the comments about ending the (DL) JV to mean they want to still code share with DL, but get rid of the JV. That's a pipe dream as DL will immediately drop them. B6 and AS are the next most likely partners.

This all makes me think that when WN can finally code share (if we aren't all dead by then) it will unlock all sorts of new feed options for all the international carriers and be a major setback to existing legacy US3 long-haul intl hubs.


B6 would certainly make a lot of sense on the East Coast, as would AS to a lesser extent on the West Coast. I have a hard time seeing WN as an attractive option for overseas legacy carriers since they would still have the issue of most of their "hubs" being at less sexy airports like BWI and OAK. But I doubt someone like AB or HU would be bothered by that.
 
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Re: Alitalia board approves revised business plan

Fri Dec 23, 2016 6:01 pm

klakzky123 wrote:
BobPatterson wrote:
Please help me to understand why Southwest cannot code share at this time. DOJ problems?


Their reservation system is ancient (there are still mainframes being used in production). The IT investment to develop proper interline and codeshare connections isn't worth the effort. They're migrating to a modern system during the 1st half of 2017 which will facilitate a bunch of changes for them beyond just interline/codeshare (think more ancillary opportunities, cabin classes, seat upgrades, better merchandising channels, etc..)


Thank you. Modern IT systems will no doubt be helpful in many ways, but I hope that WN will continue to retain "bags fly free here," unreserved seating, and also resist other money-grubbing fees in the race-to-the-bottom found elsewhere. Charge a fair price and give friendly service. A pox on the unbundled stick-it-to-the-customer policies of other airlines.
Facts are fragile things. Treat them with care. Sources are important. Alternative facts do not exist.
 
SCQ83
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Re: Alitalia board approves revised business plan

Fri Dec 23, 2016 6:10 pm

I think Alitalia should move towards Lufthansa and Etihad.

Alitalia has more to win with LH than with AFKL.

I could see AZ+LH a bit like BA+IB. Alitalia could focus on Africa and Latin America and Lufthansa on Asia and North America. Win-win for everybody.
 
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Re: Alitalia board approves revised business plan

Fri Dec 23, 2016 6:50 pm

This now 'creates' space for an LCC type operation to shift more and more of AZ's domestic/intra-european flying to.

Based on the 'focus shift' of AZ's statement, recent rumors of greater LH participation in AZ (and with EY), and with LH leasing AB's aircraft; a very tidy solution would be to expand Eurowings into Italy.
The 'reduction' of flying by departing from the AZ/AF/KLM partnership flying - can perhaps just as easily, be picked up by cooperation with Eurowings (as will be the formula at AB).

This would expand Eurowings to cover the lower costs bases that are not properly covered by the too-high-costing Alitalia.
This would alleviate the need for Alitalia to create such a brand (or, even perhaps attempt a market proliferation into 'basic economy' style seating), and allow them to focus more on cost reduction.
This would also allow LH to better focus yields in Germany, as it will essentially cherry-pick what works for AB, surrender what else works for Eurowings, and consolidate down (to none, in some cases - justifiably) unprofitable routes.
As Machiavellian as it once sounded - we discussed how EY was truly hampered by the will of not being 'European' in order to properly consolidate its holdings, and how a European partner was needed - to essentially consolidate both AB and AZ - and with very smart and low risk moves, LH can be that partner.

Despite having considerable hopes for their long-term future, at this point - both EY and LH are playing the short-medium term outlook and realizing that, for both - shrinking AZ can bring them to a modicum of profitability. Their costs are too high to even expand, profitably. Significant changes are needed - not only in focus, but perhaps in culture - and despite infusions of AirOne, AZ's corporate culture remains, with malaise. My bet now, is that as AZ returns to profitability (shrunken) - EY takes the advantageous performance to sell. LH in the meanwhile will see the growth it needs - with Eurowings growing at the bottom end, and a matter of A330s from 'substituting' some of AZ's lesser performing medium-long haul destinations. The only way out, for AZ is to work on orienting itself towards lower costs, decent yields (and this is their expectation with going long-haul 'alone'), and above all else - peaceful transitions before the Unions. Even in the best of times...
Last edited by Rajahdhani on Fri Dec 23, 2016 6:59 pm, edited 1 time in total.
 
goldorak
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Re: Alitalia board approves revised business plan

Fri Dec 23, 2016 6:51 pm

SCQ83 wrote:
I think Alitalia should move towards Lufthansa and Etihad.

Alitalia has more to win with LH than with AFKL.

I could see AZ+LH a bit like BA+IB. Alitalia could focus on Africa and Latin America and Lufthansa on Asia and North America. Win-win for everybody.

I fail to see what's win-win in that. LH doesn't need AZ to fly to Africa and Latam and LH has already plenty of preferred EU partners with SN, LX and OS. Particularly for Africa, SN is certainly a preferred partner than the potential AZ.
There is clearly a place for a flagship carrier in Italy, due to the size of the domestic market and the economic importance of the country in Europe. Whether AZ can still play this role whoever they married to remains very doubtful to me.
 
Planesmart
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Re: Alitalia board approves revised business plan

Fri Dec 23, 2016 8:02 pm

LJ wrote:
I reckon you mean EY instead of EK?


A Freudian slip maybe, but perhaps not quite as far from the truth as might be expected. There is increasing co-operation and dialogue between EK and EY.

Before the end of the decade there will likely be the ME2 - three brands maybe, but only two businesses.
 
Rom1
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Re: Alitalia board approves revised business plan

Fri Dec 23, 2016 8:33 pm

Planesmart wrote:
LJ wrote:
I reckon you mean EY instead of EK?


A Freudian slip maybe, but perhaps not quite as far from the truth as might be expected. There is increasing co-operation and dialogue between EK and EY.

Before the end of the decade there will likely be the ME2 - three brands maybe, but only two businesses.


Could you share one example of co-opeeration between EK and EY please?
Here or PM...
 
planespotter20
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Re: Alitalia board approves revised business plan

Fri Dec 23, 2016 9:02 pm

Finally good to see Alitalia actually try to make big changes. They actually listened to what their CEO/ Etihad had to say; shrink short haul, and expand long haul. The short haul market in Europe is tough to be in for legacy carriers, given the strength of LCCs. Long Haul LCCs have yet to develop into large and flourishing carriers so that is where I think AZ should focus, as the bussiness plan says.

I heard they were adding a maiden 77W, and they should definitley invest in a future fleet.
 
guillelds
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Re: Alitalia board approves revised business plan

Fri Dec 23, 2016 9:56 pm

Alitalia should focus on long haul and let ULCC from Europe to take over of domestic routes, as well to sell unproductive assets like that appartment they have in Caracas for their crew.
 
peterj324
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Re: Alitalia board approves revised business plan

Fri Dec 23, 2016 10:45 pm

Alitalia must be really hurting because of Ryanair. It really hurts because Rome CIA is closer to the city than Rome FCO and Milan BGY is closer than Milan MXP. Italy is one of the few cases where the LCC airports are generally closer than the main International airports. Because of this they are being hurt more by ULCC than other legacy carriers are.

Anyways, good for Alitalia to make some real changes instead of denying they have a problem and hoping for the best which I was sort of expecting out of them. They are right in focusing on their long haul network, specifically in Asia where tourists flock to Italy. Short haul is unlikely to ever be very profitable because of all the ULCC competition.
 
planespotter20
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Re: Alitalia board approves revised business plan

Sat Dec 24, 2016 9:33 pm

Going forward AZ should diminish its EU flying. If I'm going to be honest, the intra-European flying is getting taken over by the ULCCs. They should focus on flying to larger cities through out Europe, and stop trying to reach the smaller points around Europe. They could bulk up Italian flying even though I'm pretty sure Italians love taking the trains (I have and it is a very nice ride).

In short, bulk up the long-haul diminish short haul, as the new business case says.

Now here's a question. Let's say they want to become profitable, could they make a low cost subsidiary and let that take over short haul EU flights? Thoughts?
 
Waterbomber
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Re: Alitalia board approves revised business plan

Sat Dec 24, 2016 10:39 pm

peterj324 wrote:
Alitalia must be really hurting because of Ryanair. It really hurts because Rome CIA is closer to the city than Rome FCO and Milan BGY is closer than Milan MXP. Italy is one of the few cases where the LCC airports are generally closer than the main International airports. Because of this they are being hurt more by ULCC than other legacy carriers are.

Anyways, good for Alitalia to make some real changes instead of denying they have a problem and hoping for the best which I was sort of expecting out of them. They are right in focusing on their long haul network, specifically in Asia where tourists flock to Italy. Short haul is unlikely to ever be very profitable because of all the ULCC competition.


AZ is hurting because of AZ, not only because of FR.
Refocusing on long haul after burning through their treasury will probably only accelerate the inevitable insolvency.
It takes a lot of funds and time before you start seeing returns on a long haul route.

As for LIN being the better airport for Milan, I'm not so sure.
AZ is offering connections through their LIN hub on international routes that are also offered through FCO, but doing so cheaper and on the smaller Ejets.
Otherwise, the P2P international flights to/from LIN seem to be quite low yield and very leisure-oriented, from the dozens of flights I took this year.
So I doubt that their LIN routes are very profitable, except on the domestic sectors.
To seal the whole deal, AZ is running duplicate long haul routes NRT and JFK as daily O&D routes from MXP without any feeding (or with an inconvenient airport change from LIN), which is a waste of money.

Even if you fix all of those things, AZ can't be profitable because there are about 300 other issues that needs fixing.
For instance, they should force the countless ill-educated businessmen who walk around in the small lounges talking on the phone, to stop that rude behavior. People come into lounges to enjoy a nice and quiet atmosphere that is at least more relaxing than being in the terminal, not to be in a call center.
It's also nice to have a bar tender, but only if they pour your drinks into clean and dry glasses instead of glasses "washed" by a single dump in dirty water.
Even if things are better than in the old days, AZ staff behave like they are public servants and to re-educate them is a non-starter.
Another one, sending their mechanics to English courses so that they can start following manuals would also save the airline some costly MX errors that result in AOG's down the line.
296 more to go...
 
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mercure1
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Re: Alitalia board approves revised business plan

Mon Jan 09, 2017 6:44 pm

Media reporting additional phase of Alitalia business plan to be announced as soon as this week.

One proposal is reportedly be separated AZ into two units, one focused on short-haul European flights, and the another focused on long-haul intercontinental flights.

Plans call for cuts of 1,600-4,000 staff which would help and reduce costs along with closing of loss-making domestic and regional routes.

Alitalia will meet with Italian government to explain its plans.


https://www.bloomberg.com/news/articles ... id-to-loom
http://www.lse.co.uk/AllNews.asp?code=g ... trial_Plan
http://www.thenational.ae/business/avia ... -this-week
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LAXintl
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Re: Alitalia board approves revised business plan

Mon Jan 09, 2017 9:26 pm

Wonder if the concept of splitting the airlines into two units has anything to do with lumping one with the older debts and staff burdens, while allowing the one a cleaner start again?
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DDR
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Re: Alitalia board approves revised business plan

Mon Jan 09, 2017 11:23 pm

LAXintl wrote:
Wonder if the concept of splitting the airlines into two units has anything to do with lumping one with the older debts and staff burdens, while allowing the one a cleaner start again?


Interesting thought. Which unit do you think would get the clean start?
 
psimpson
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Re: Alitalia board approves revised business plan

Mon Jan 09, 2017 11:27 pm

georgiabill wrote:
Is AZ still considering adding 77W'S? Are they coming from EY or a lessor? I would have thought 789'S or A350'S would be a better option.

I have not seen anything about Alitalia getting B77Ws.
They still have a B772 in new livery parked in Abu Dhabi reg EI-FNI which i would have thought would be there first priority.
Alitalia did have an order for 12 A358s inherited from an Air One order, but this was cancelled early 2014.
 
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VCEflyboy
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Re: Alitalia board approves revised business plan

Tue Jan 10, 2017 7:38 am

psimpson wrote:
georgiabill wrote:
Is AZ still considering adding 77W'S? Are they coming from EY or a lessor? I would have thought 789'S or A350'S would be a better option.

I have not seen anything about Alitalia getting B77Ws.
They still have a B772 in new livery parked in Abu Dhabi reg EI-FNI which i would have thought would be there first priority.
Alitalia did have an order for 12 A358s inherited from an Air One order, but this was cancelled early 2014.


THe order was converted to a320s at the time when AZ had a monopoly on the LIN FCO route that back then was a gold mine. Times have changed and the a320 is too much for their domestic network.
I believe what we can expect is :
AZ going low-cost and smaller planes in their domestic and regional airport
AZ leaving Skyteam/AFKLDL JV and starting new long haul routes from FCO - mostly transatlantic and Central America
Virtually all Asia routes operated by EY, with the exception of Big routes like Incheon, Tokyo Beijing...
New planes will only come from EY. No new order any time soon.
 
bennett123
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Re: Alitalia board approves revised business plan

Wed Jan 11, 2017 8:35 am

When you say smaller, could they go for A319's.
 
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Aquila3
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Re: Alitalia board approves revised business plan

Wed Jan 11, 2017 12:31 pm

Unions have already set up a "general strike of the whole air transport" for Jan. 20 , due to the incoming crisis, it seems. I want to see if this will help AZ or its workers.
It is the ANSA local news.
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GianiDC
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Re: Alitalia board approves revised business plan

Wed Jan 11, 2017 1:06 pm

So plans didn´t even go through with government yet and the unions already want to strike?

It hurts me to say this but AZ should just go into bankruptcy and perhaps after that start a new airline. No way will AZ become a healthy airline with new business plans especially if there is a new one every year or so. There are so many problems many of which already mentioned.

I would very much like to see a turnaround like IB did. That should be their goal. In a couple of years they became from one of the most unprofitable airlines to one of the best run airlines in europe.
 
flyingcat
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Re: Alitalia board approves revised business plan

Wed Jan 11, 2017 1:28 pm

LAXintl wrote:
Wonder if the concept of splitting the airlines into two units has anything to do with lumping one with the older debts and staff burdens, while allowing the one a cleaner start again?

I thought AZ already did this similar to GM in order to lower debt payments.
 
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Polot
Posts: 10715
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Re: Alitalia board approves revised business plan

Wed Jan 11, 2017 2:15 pm

GianiDC wrote:
It hurts me to say this but AZ should just go into bankruptcy and perhaps after that start a new airline.


They already tried that once. "New" Alitalia launched in early 2009 as "old" Alitalia died. As you can see 8 years later it didn't work. The problem is Alitalia/Italy is always thinking too big and not accepting reality- AZ is, in today's world, always going to be a small bit player and not some large Italian intercontinental powerhouse. They want to be like KLM but that is never going to work for a variety of reasons.
 
commavia
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Re: Alitalia board approves revised business plan

Wed Jan 11, 2017 2:22 pm

Polot wrote:
They already tried that once. "New" Alitalia launched in early 2009 as "old" Alitalia died. As you can see 8 years later it didn't work. The problem is Alitalia/Italy is always thinking too big and not accepting reality- AZ is, in today's world, always going to be a small bit player and not some large Italian intercontinental powerhouse. They want to be like KLM but that is never going to work for a variety of reasons.


That pretty much sums it up.

Italy is obviously still a very large country - demographically and economically - and of course it's one of the world's preeminent tourism markets. The problem is that for a variety of reasons - some within Alitalia's control and many outside of Alitalia's control - the carrier is structurally incapable of being globally competitive. Italy's labor laws and culture are simply not conducive to modern necessities of efficiency. And its hub structure - stymied by the perpetual challenge that Italy's most important business market is split between a highly-in-demand shorthaul airport and a far less favorable longhaul airport - means Alitalia can never build a viable, high-yielding network hub. Frankly, at this point, given what Alitalia must contend with, I actually think it might just be better off focusing on LIN shorthaul and FCO for longhaul/shorthaul - MXP may well be a losing proposition for Alitalia going forward. The problem is that even for a LIN shorthaul and FCO longhaul/shorthaul airline, I don't know if Alitalia in its present form can actually be successful.
 
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LAXintl
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Re: Alitalia board approves revised business plan

Tue Mar 07, 2017 1:03 am

Reports that the BoD reviewed the revised business plan today and will approve it by the weekend.
Suppose details should be forthcoming shortly after.

Alitalia to finalize new business plan by March 12
http://atwonline.com/airlines/alitalia- ... n-march-12

=
From the desert to the sea, to all of Southern California
 
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eta unknown
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Re: Alitalia board approves revised business plan

Tue Mar 07, 2017 2:24 am

Yes, well the BoD may have reviewed a plan, but that doesn't mean it'll fly. A few highlights:
a) The 2 banks involved want the EY loyal and appointed CEO removed and replaced with an Italian (ex media/telecom person in contention)
b) The 2 banks (debt overexposed) & EY refuse to contribute a single cent to AZ unless the cost cutting plan is approved.
c) The plan includes 2000 redundancies + parking 20 Airbus (more redundancies in addition to the initial 2000).
d) The plan states revenue would grow 40%... banks are laughing as this was before parking 20 aircraft was mentioned.
e) The unions haven't been consulted about the plan yet.
Fasten your seat belts and BRACE BRACE BRACE
 
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kitplane01
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Re: Alitalia board approves revised business plan

Thu Mar 09, 2017 4:58 am

eta unknown wrote:
Yes, well the BoD may have reviewed a plan, but that doesn't mean it'll fly. A few highlights:
a) The 2 banks involved want the EY loyal and appointed CEO removed and replaced with an Italian (ex media/telecom person in contention)
b) The 2 banks (debt overexposed) & EY refuse to contribute a single cent to AZ unless the cost cutting plan is approved.
c) The plan includes 2000 redundancies + parking 20 Airbus (more redundancies in addition to the initial 2000).
d) The plan states revenue would grow 40%... banks are laughing as this was before parking 20 aircraft was mentioned.
e) The unions haven't been consulted about the plan yet.
Fasten your seat belts and BRACE BRACE BRACE


I understand that the Italian government is forbidden by EU rules from subsidizing Alitalia. If EY and the banks will also not fund it, where does it get the money to make any reforms (or even continue to fund operations)?

Seriously, is there any reasonable way forward for them?
 
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usdcaguy
Posts: 1538
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Re: Alitalia board approves revised business plan

Thu Mar 09, 2017 6:01 am

I fail to see how they'd find a better partner in LH. LH does not need AZ in the least bit, and they already own three other carriers. AZ could use DL's feed in the US, as well, but they see flying to SFO in the winter to be more lucrative and don't appreciate sharing revenue with DL/AF/KL on DL-operated flights from ATL and JFK, full of connecting passengers. Something's fishy here. DL might even cancel their T&B with them if they decide to drop out. Not a pretty picture.
 
LHRFlyer
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Joined: Sun Apr 11, 2010 12:50 pm

Re: Alitalia board approves revised business plan

Wed Mar 15, 2017 11:03 pm

Alitalia has just announced the board has approved a new business plan.

http://corporate.alitalia.it/en/media/p ... 3-15b.html

Rome, 15 March 2017 - Alitalia’s Board of Directors today approved the airline’s turnaround business plan which includes a range of radical and necessary measures across the whole of the company to stabilise it and secure its long-term sustainability.

The plan’s funding by the company’s shareholders is subject to Alitalia’s trade unions agreeing to a new collective works agreement and headcount-related measures.

Airline management will soon present the board-approved plan to the Italian government and then meet with trade unions to explain the details of the business plan, headcount-related measures and resume talks on a new collective labour agreement.

Alitalia said it will reduce costs by €1 billion in the first three years of the plan by 2019 with reductions in operating costs and manpower. Alitalia will increase revenues, in the same timeframe to 2019, by 30 per cent from €2.9 billion to €3.7 billion.

These financial performance indicators are judged to be realistic and achievable by independent advisors and the projected figures would turn Alitalia into a profitable business by 2019.

The business plan actions are supported by ‘four pillars of change’; a recalibrated business model, costs reductions and enhanced productivity, optimisation of network and partnership, and develop commercial initiatives by utilising technology investments to drive revenue.

Cramer Ball, Alitalia CEO, said: “With the approval today by the Board of Directors of the second phase of our business plan we can now accelerate our actions towards turning around Alitalia. We re-built our brand in the first phase and invested heavily in staff training and technology so we are now able to move ahead and implement wide-ranging changes. The aviation industry is ferociously competitive and never stands still. Only through radical change will Alitalia’s fortunes be turned around. We must transform this business into a dynamic entity that is attractive to customers who have plenty of choice for their air travel needs. Consumers’ buying habits have been shaped by how low cost carriers sell their products. I am confident that the next phase of the industrial plan will represent the step forward needed, provided that all interested parties play their part. The radical and necessary measures across the entire airline will secure our long-term sustainability which will only materialise if the airline is the right size, the right shape and with the right productivity and cost base.

We must do this, especially in our short and medium haul business in order to provide a platform to grow our profitable long-haul business further in the future. This is a critical aspect because most of our customers fly on our short and medium-haul planes to connect onto our long-haul services. If we can’t compete throughout Italy and Europe against low-cost carriers then we lose air travellers that connect onto intercontinental flights. Put simply, there is absolutely no alternative.”

Details of the four pillars of Alitalia’s second phase of its business plan are:

A recalibrated business model
Narrow body planes for the short and medium haul will see an increase in utilisation, extra seats are being fitted, buy-on-board and ancillaries services and more attractive air fares will be introduced in a concerted drive towards increasing revenue while stripping out existing costs.

Mr Ball said: “In the short and medium-haul markets – domestic flying in Italy and throughout Europe – passengers will be able to personalise their journey. We will simplify air fares and offer customers the opportunity to purchase products such as seat selection, checked-in luggage and priority boarding throughout the booking process, and all the way up to the airport gate. On flights that are four hours or less we will introduce the buy-on-board concept that is not only commonplace with low-cost carriers but is happening more and more at traditional, network airlines. We will offer our customers a choice of ‘made in Italy’ hot and cold food, snacks and drinks at competitive prices.”

Alitalia’s wide-body intercontinental flights will be based on a full-service model and maintain an intense focus on costs and efficiency. In addition to Alitalia’s A330 fleet, the carrier’s Boeing 777s will be fitted with new in-flight entertainment and Wi-Fi. Alitalia’s new flagship aircraft, a 382 seater Boeing 777-300ER, will join the long-haul fleet in August 2017

Cost reductions and increased productivity
Low cost carriers currently represent 47 per cent of the Italian air travel market, the highest market penetration in Europe.

Talks are already underway with a number of the airline’s suppliers to renegotiate contracts and drive down costs to levels comparable with the competition. Target companies are in sectors such as aircraft leasing, global distribution, in-flight catering, airport ground handling and airports themselves.

Network and partnership optimisation
Alitalia will rebalance its fleet of aircraft by 2018, reducing its narrow-body fleet by 20. The airline will increase aircraft utilisation with a particular focus on short and medium-haul aircraft. Alitalia plans to grow its number of flights from Italy to the Americas – one of its most underserved markets – and build its presence at Milan Linate, Sicily and Sardinia. The airline will re-evaluate its transatlantic options to try and fly more often on existing routes and to add new cities in the Americas.

Develop new commercial initiatives by utilising technology investments to drive revenue
Alitalia has invested €200 million in the last two years on new technology and it will now use the investment to improve efficiency and productivity to drive further revenue opportunities.

Mr Ball said: “Our investment in technology will enable us to develop new sales channels and this will contribute to increasing our revenue by 30 per cent by 2019. Consumers use tablet devices and mobile phones more than ever to manage their travel experiences, and we will make it easier for them to interact with the airline. About 20 per cent of our customers already use on-line ways to book their flights and we aim to increase that figure to more than 50 per cent. Our customers will continue to notice our enhancements and realise that Alitalia has become a different airline from the past.”
 
jbs2886
Posts: 2412
Joined: Wed Apr 01, 2015 9:07 pm

Re: Alitalia board approves revised business plan

Wed Mar 15, 2017 11:21 pm

LHRFlyer wrote:
Alitalia has just announced the board has approved a new business plan.

http://corporate.alitalia.it/en/media/p ... 3-15b.html

Rome, 15 March 2017 - Alitalia’s Board of Directors today approved the airline’s turnaround business plan which includes a range of radical and necessary measures across the whole of the company to stabilise it and secure its long-term sustainability.

The plan’s funding by the company’s shareholders is subject to Alitalia’s trade unions agreeing to a new collective works agreement and headcount-related measures.

Airline management will soon present the board-approved plan to the Italian government and then meet with trade unions to explain the details of the business plan, headcount-related measures and resume talks on a new collective labour agreement.

Alitalia said it will reduce costs by €1 billion in the first three years of the plan by 2019 with reductions in operating costs and manpower. Alitalia will increase revenues, in the same timeframe to 2019, by 30 per cent from €2.9 billion to €3.7 billion.

These financial performance indicators are judged to be realistic and achievable by independent advisors and the projected figures would turn Alitalia into a profitable business by 2019.

The business plan actions are supported by ‘four pillars of change’; a recalibrated business model, costs reductions and enhanced productivity, optimisation of network and partnership, and develop commercial initiatives by utilising technology investments to drive revenue.

Cramer Ball, Alitalia CEO, said: “With the approval today by the Board of Directors of the second phase of our business plan we can now accelerate our actions towards turning around Alitalia. We re-built our brand in the first phase and invested heavily in staff training and technology so we are now able to move ahead and implement wide-ranging changes. The aviation industry is ferociously competitive and never stands still. Only through radical change will Alitalia’s fortunes be turned around. We must transform this business into a dynamic entity that is attractive to customers who have plenty of choice for their air travel needs. Consumers’ buying habits have been shaped by how low cost carriers sell their products. I am confident that the next phase of the industrial plan will represent the step forward needed, provided that all interested parties play their part. The radical and necessary measures across the entire airline will secure our long-term sustainability which will only materialise if the airline is the right size, the right shape and with the right productivity and cost base.

We must do this, especially in our short and medium haul business in order to provide a platform to grow our profitable long-haul business further in the future. This is a critical aspect because most of our customers fly on our short and medium-haul planes to connect onto our long-haul services. If we can’t compete throughout Italy and Europe against low-cost carriers then we lose air travellers that connect onto intercontinental flights. Put simply, there is absolutely no alternative.”

Details of the four pillars of Alitalia’s second phase of its business plan are:

A recalibrated business model
Narrow body planes for the short and medium haul will see an increase in utilisation, extra seats are being fitted, buy-on-board and ancillaries services and more attractive air fares will be introduced in a concerted drive towards increasing revenue while stripping out existing costs.

Mr Ball said: “In the short and medium-haul markets – domestic flying in Italy and throughout Europe – passengers will be able to personalise their journey. We will simplify air fares and offer customers the opportunity to purchase products such as seat selection, checked-in luggage and priority boarding throughout the booking process, and all the way up to the airport gate. On flights that are four hours or less we will introduce the buy-on-board concept that is not only commonplace with low-cost carriers but is happening more and more at traditional, network airlines. We will offer our customers a choice of ‘made in Italy’ hot and cold food, snacks and drinks at competitive prices.”

Alitalia’s wide-body intercontinental flights will be based on a full-service model and maintain an intense focus on costs and efficiency. In addition to Alitalia’s A330 fleet, the carrier’s Boeing 777s will be fitted with new in-flight entertainment and Wi-Fi. Alitalia’s new flagship aircraft, a 382 seater Boeing 777-300ER, will join the long-haul fleet in August 2017

Cost reductions and increased productivity
Low cost carriers currently represent 47 per cent of the Italian air travel market, the highest market penetration in Europe.

Talks are already underway with a number of the airline’s suppliers to renegotiate contracts and drive down costs to levels comparable with the competition. Target companies are in sectors such as aircraft leasing, global distribution, in-flight catering, airport ground handling and airports themselves.

Network and partnership optimisation
Alitalia will rebalance its fleet of aircraft by 2018, reducing its narrow-body fleet by 20. The airline will increase aircraft utilisation with a particular focus on short and medium-haul aircraft. Alitalia plans to grow its number of flights from Italy to the Americas – one of its most underserved markets – and build its presence at Milan Linate, Sicily and Sardinia. The airline will re-evaluate its transatlantic options to try and fly more often on existing routes and to add new cities in the Americas.

Develop new commercial initiatives by utilising technology investments to drive revenue
Alitalia has invested €200 million in the last two years on new technology and it will now use the investment to improve efficiency and productivity to drive further revenue opportunities.

Mr Ball said: “Our investment in technology will enable us to develop new sales channels and this will contribute to increasing our revenue by 30 per cent by 2019. Consumers use tablet devices and mobile phones more than ever to manage their travel experiences, and we will make it easier for them to interact with the airline. About 20 per cent of our customers already use on-line ways to book their flights and we aim to increase that figure to more than 50 per cent. Our customers will continue to notice our enhancements and realise that Alitalia has become a different airline from the past.”


Interesting. First, how many 777-300ERs are they taking? Second, despite the transatlantic competition that has depressed yields, that's where Alitalia wants to focus.
 
EddieDude
Posts: 7048
Joined: Fri Nov 14, 2003 10:19 am

Re: Alitalia board approves revised business plan

Thu Mar 16, 2017 12:25 am

jbs2886 wrote:
how many 777-300ERs are they taking?

Apparently for the time being just one. An ex-Air Austral. Will be flying FCO-EZE-FCO three times a week (the other four days, it will be a 77E). Wonder if more will be brought later on.
Upcoming flights:
April/May: AM MEX-SCL 788 (J), AM EZE-MEX 789 (J).
 
planespotter20
Posts: 174
Joined: Sun Nov 20, 2016 5:03 pm

Re: Alitalia board approves revised business plan

Thu Mar 16, 2017 12:04 pm

jbs2886 wrote:
LHRFlyer wrote:
Alitalia has just announced the board has approved a new business plan.

http://corporate.alitalia.it/en/media/p ... 3-15b.html

Rome, 15 March 2017 - Alitalia’s Board of Directors today approved the airline’s turnaround business plan which includes a range of radical and necessary measures across the whole of the company to stabilise it and secure its long-term sustainability.

The plan’s funding by the company’s shareholders is subject to Alitalia’s trade unions agreeing to a new collective works agreement and headcount-related measures.

Airline management will soon present the board-approved plan to the Italian government and then meet with trade unions to explain the details of the business plan, headcount-related measures and resume talks on a new collective labour agreement.

Alitalia said it will reduce costs by €1 billion in the first three years of the plan by 2019 with reductions in operating costs and manpower. Alitalia will increase revenues, in the same timeframe to 2019, by 30 per cent from €2.9 billion to €3.7 billion.

These financial performance indicators are judged to be realistic and achievable by independent advisors and the projected figures would turn Alitalia into a profitable business by 2019.

The business plan actions are supported by ‘four pillars of change’; a recalibrated business model, costs reductions and enhanced productivity, optimisation of network and partnership, and develop commercial initiatives by utilising technology investments to drive revenue.

Cramer Ball, Alitalia CEO, said: “With the approval today by the Board of Directors of the second phase of our business plan we can now accelerate our actions towards turning around Alitalia. We re-built our brand in the first phase and invested heavily in staff training and technology so we are now able to move ahead and implement wide-ranging changes. The aviation industry is ferociously competitive and never stands still. Only through radical change will Alitalia’s fortunes be turned around. We must transform this business into a dynamic entity that is attractive to customers who have plenty of choice for their air travel needs. Consumers’ buying habits have been shaped by how low cost carriers sell their products. I am confident that the next phase of the industrial plan will represent the step forward needed, provided that all interested parties play their part. The radical and necessary measures across the entire airline will secure our long-term sustainability which will only materialise if the airline is the right size, the right shape and with the right productivity and cost base.

We must do this, especially in our short and medium haul business in order to provide a platform to grow our profitable long-haul business further in the future. This is a critical aspect because most of our customers fly on our short and medium-haul planes to connect onto our long-haul services. If we can’t compete throughout Italy and Europe against low-cost carriers then we lose air travellers that connect onto intercontinental flights. Put simply, there is absolutely no alternative.”

Details of the four pillars of Alitalia’s second phase of its business plan are:

A recalibrated business model
Narrow body planes for the short and medium haul will see an increase in utilisation, extra seats are being fitted, buy-on-board and ancillaries services and more attractive air fares will be introduced in a concerted drive towards increasing revenue while stripping out existing costs.

Mr Ball said: “In the short and medium-haul markets – domestic flying in Italy and throughout Europe – passengers will be able to personalise their journey. We will simplify air fares and offer customers the opportunity to purchase products such as seat selection, checked-in luggage and priority boarding throughout the booking process, and all the way up to the airport gate. On flights that are four hours or less we will introduce the buy-on-board concept that is not only commonplace with low-cost carriers but is happening more and more at traditional, network airlines. We will offer our customers a choice of ‘made in Italy’ hot and cold food, snacks and drinks at competitive prices.”

Alitalia’s wide-body intercontinental flights will be based on a full-service model and maintain an intense focus on costs and efficiency. In addition to Alitalia’s A330 fleet, the carrier’s Boeing 777s will be fitted with new in-flight entertainment and Wi-Fi. Alitalia’s new flagship aircraft, a 382 seater Boeing 777-300ER, will join the long-haul fleet in August 2017

Cost reductions and increased productivity
Low cost carriers currently represent 47 per cent of the Italian air travel market, the highest market penetration in Europe.

Talks are already underway with a number of the airline’s suppliers to renegotiate contracts and drive down costs to levels comparable with the competition. Target companies are in sectors such as aircraft leasing, global distribution, in-flight catering, airport ground handling and airports themselves.

Network and partnership optimisation
Alitalia will rebalance its fleet of aircraft by 2018, reducing its narrow-body fleet by 20. The airline will increase aircraft utilisation with a particular focus on short and medium-haul aircraft. Alitalia plans to grow its number of flights from Italy to the Americas – one of its most underserved markets – and build its presence at Milan Linate, Sicily and Sardinia. The airline will re-evaluate its transatlantic options to try and fly more often on existing routes and to add new cities in the Americas.

Develop new commercial initiatives by utilising technology investments to drive revenue
Alitalia has invested €200 million in the last two years on new technology and it will now use the investment to improve efficiency and productivity to drive further revenue opportunities.

Mr Ball said: “Our investment in technology will enable us to develop new sales channels and this will contribute to increasing our revenue by 30 per cent by 2019. Consumers use tablet devices and mobile phones more than ever to manage their travel experiences, and we will make it easier for them to interact with the airline. About 20 per cent of our customers already use on-line ways to book their flights and we aim to increase that figure to more than 50 per cent. Our customers will continue to notice our enhancements and realise that Alitalia has become a different airline from the past.”


Interesting. First, how many 777-300ERs are they taking? Second, despite the transatlantic competition that has depressed yields, that's where Alitalia wants to focus.


I'm not sure how many 77W's they are adding but it can't be too many. They'll probably keep all their planes until they're dirt old, and then when they MIGHT make money again, in 2021, the production line would have cleared up for new slots available on the a350 and 787 lines. All in all, i hope newer aircraft find their way to the fleet, and maybe some neo's for short haul in the coming years.

They just gotta make money first...
 
runway23
Posts: 2336
Joined: Sat Jan 15, 2005 2:12 am

Re: Alitalia board approves revised business plan

Thu Mar 16, 2017 12:44 pm

LHRFlyer wrote:
Alitalia has just announced the board has approved a new business plan.

http://corporate.alitalia.it/en/media/p ... 3-15b.html

Rome, 15 March 2017 - Alitalia’s Board of Directors today approved the airline’s turnaround business plan which includes a range of radical and necessary measures across the whole of the company to stabilise it and secure its long-term sustainability.

The plan’s funding by the company’s shareholders is subject to Alitalia’s trade unions agreeing to a new collective works agreement and headcount-related measures.

Airline management will soon present the board-approved plan to the Italian government and then meet with trade unions to explain the details of the business plan, headcount-related measures and resume talks on a new collective labour agreement.

Alitalia said it will reduce costs by €1 billion in the first three years of the plan by 2019 with reductions in operating costs and manpower. Alitalia will increase revenues, in the same timeframe to 2019, by 30 per cent from €2.9 billion to €3.7 billion.

These financial performance indicators are judged to be realistic and achievable by independent advisors and the projected figures would turn Alitalia into a profitable business by 2019.

The business plan actions are supported by ‘four pillars of change’; a recalibrated business model, costs reductions and enhanced productivity, optimisation of network and partnership, and develop commercial initiatives by utilising technology investments to drive revenue.

Cramer Ball, Alitalia CEO, said: “With the approval today by the Board of Directors of the second phase of our business plan we can now accelerate our actions towards turning around Alitalia. We re-built our brand in the first phase and invested heavily in staff training and technology so we are now able to move ahead and implement wide-ranging changes. The aviation industry is ferociously competitive and never stands still. Only through radical change will Alitalia’s fortunes be turned around. We must transform this business into a dynamic entity that is attractive to customers who have plenty of choice for their air travel needs. Consumers’ buying habits have been shaped by how low cost carriers sell their products. I am confident that the next phase of the industrial plan will represent the step forward needed, provided that all interested parties play their part. The radical and necessary measures across the entire airline will secure our long-term sustainability which will only materialise if the airline is the right size, the right shape and with the right productivity and cost base.

We must do this, especially in our short and medium haul business in order to provide a platform to grow our profitable long-haul business further in the future. This is a critical aspect because most of our customers fly on our short and medium-haul planes to connect onto our long-haul services. If we can’t compete throughout Italy and Europe against low-cost carriers then we lose air travellers that connect onto intercontinental flights. Put simply, there is absolutely no alternative.”

Details of the four pillars of Alitalia’s second phase of its business plan are:

A recalibrated business model
Narrow body planes for the short and medium haul will see an increase in utilisation, extra seats are being fitted, buy-on-board and ancillaries services and more attractive air fares will be introduced in a concerted drive towards increasing revenue while stripping out existing costs.

Mr Ball said: “In the short and medium-haul markets – domestic flying in Italy and throughout Europe – passengers will be able to personalise their journey. We will simplify air fares and offer customers the opportunity to purchase products such as seat selection, checked-in luggage and priority boarding throughout the booking process, and all the way up to the airport gate. On flights that are four hours or less we will introduce the buy-on-board concept that is not only commonplace with low-cost carriers but is happening more and more at traditional, network airlines. We will offer our customers a choice of ‘made in Italy’ hot and cold food, snacks and drinks at competitive prices.”

Alitalia’s wide-body intercontinental flights will be based on a full-service model and maintain an intense focus on costs and efficiency. In addition to Alitalia’s A330 fleet, the carrier’s Boeing 777s will be fitted with new in-flight entertainment and Wi-Fi. Alitalia’s new flagship aircraft, a 382 seater Boeing 777-300ER, will join the long-haul fleet in August 2017

Cost reductions and increased productivity
Low cost carriers currently represent 47 per cent of the Italian air travel market, the highest market penetration in Europe.

Talks are already underway with a number of the airline’s suppliers to renegotiate contracts and drive down costs to levels comparable with the competition. Target companies are in sectors such as aircraft leasing, global distribution, in-flight catering, airport ground handling and airports themselves.

Network and partnership optimisation
Alitalia will rebalance its fleet of aircraft by 2018, reducing its narrow-body fleet by 20. The airline will increase aircraft utilisation with a particular focus on short and medium-haul aircraft. Alitalia plans to grow its number of flights from Italy to the Americas – one of its most underserved markets – and build its presence at Milan Linate, Sicily and Sardinia. The airline will re-evaluate its transatlantic options to try and fly more often on existing routes and to add new cities in the Americas.

Develop new commercial initiatives by utilising technology investments to drive revenue
Alitalia has invested €200 million in the last two years on new technology and it will now use the investment to improve efficiency and productivity to drive further revenue opportunities.

Mr Ball said: “Our investment in technology will enable us to develop new sales channels and this will contribute to increasing our revenue by 30 per cent by 2019. Consumers use tablet devices and mobile phones more than ever to manage their travel experiences, and we will make it easier for them to interact with the airline. About 20 per cent of our customers already use on-line ways to book their flights and we aim to increase that figure to more than 50 per cent. Our customers will continue to notice our enhancements and realise that Alitalia has become a different airline from the past.”


I wonder if the Embraer fleet will be resized or removed ? 20 Aircraft is exactly what they have, 15 175s and 5 190s. No other European network carrier relies as much on the 175s as Alitalia. If you except LCY ops, there is in my mind no reason why AZ should hold on to these. The CASM and costs related to this fleet must be eye watering. Rome is a volume market and they shouldn't have problems filling 32S on the routes they fly (certainly their competition don't).

I still fail to understand why AZ continues to try to expand LIN, Sardinia and Sicily. They should be putting all their efforts into building FCO, which they aren't doing. This makes me believe they must be losing large amounts of money on many routes ex-FCO whereby building the other 3 places makes more sense and brings higher revenue (which it shouldn't for a hub carrier in the process of downsizing).

Going buy-on-board is also interesting. Not many carriers left in Europe with complimentary service. I wonder if AZ will still offer some water, coffee/tea or go with the full LCC experience.

In any case will be interesting to see how long this business plan lasts and what happens to Cramer Ball.

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