Home Airlines Alitalia is “no longer needed”

Alitalia is “no longer needed”


CAPA presents “harsh truth” in analysis
Bankruptcy proceedings have started at Alitalia after confirmation by shareholders that they would not provide the €2 billion in fresh capital the loss-making airline needs. It has government cash to keep flying for six months but then that’s probably it.
In analysis, industry analysts at CAPA conclude: “The harsh truth is that – outside a number of unhappy staff – nobody really needs Alitalia.”
Alitalia employees voted 67% against a restructuring plan that was to have included €1 billion in cost cuts. Airline-union negotiations reduced the number of proposed redundancies, from 2,000 job cuts to 980, but still staff voted against the plan.
The whole company is now up for sale, but a buyer – IAG, Air France-KLM or Lufthansa – is unlikely. Lufthansa has considered investing in Alitalia in the past, briefly setting up Lufthansa Italia in 2008 and now running a regional airline subsidiary, Air Dolomiti. But it is busy integrating Brussels Airlines.
This might change in a deal with Alitalia’s 49% shareholder Etihad also involving airberlin. But Alitalia’s losses are unappealing.
Another possibility is Chinese conglomerate HNA Group, but the Italian airline’s track record is a definite hurdle, while HNA’s European focus is on developing a relationship Portuguese carrier TAP.
More state funding has been ruled out. If no buyer is found, the only alternative seems to be liquidation. The airline looks doomed.


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