The Air France deal has collapsed because of union intransigence. Alitalia's CEO has resigned. The airline has only enough cash/credit to operate through June. Unless the Italian gov't bails them out, Alitalia is headed for bankruptcy.
Well, Sabena went that way, heaving a last breath and leaving passengers stranded all over one autumn morning. I don't think the world ended, though.
Alitalia has been so fraught with problems you are probably right: not only not a bad thing but maybe a small blessing (at least Berlù won't be able to pound us over the head with it!).
Maybe some hotshot entrepreneur will grab it and resuscitate into a fab showcase EU airline, but maybe not. Who knows? Who really cares? Anyway it stood for:
Always Late In Takeoff Also Late In Arrival
Posts: 929 | Location (City & State): From Lille to Torino | Registered: 12 January 2008
It's interesting to see these unions slit their own throats. Poor service, rude people, late flights, and then they won't budge at their last chance to save their jobs. It' seems a good lesson for Italians and the Italian government if Alitalia just disappers.
The complacency and greed finally caught up with a decaying organization that should have been long punished for its ineffecient business operation.
Those Italian politicians like Berlusconi who claims he will not sell Alitalia are just lying between their teeth to please the pride of the voters.
Even Swiss Air went bankrupt and they were the model of profitable and effecient airline business. Alitalia is long overdue.
Air France saw that the union and the Italian political establishment has lost their senses and I am happy to see they have the common sense away to walk away from a bad deal. In business it is more important to learn not get into a bad deal than merely know what's a good deal.
The airline is not profitable. The color is unattractive, the service is mediocre, the route is not convenient and the prices are high. Their cost structure is way too high and how can the employees demand pay and no job loss if the company is losing money? No profit = no jobs. Employment by private enterprises can only exist if they are profitable consistently, otherwise where is the money to pay?
If Alitalia goes into bankruptcy, most likely it will be up for sale again and the buyer will strip even more jobs.
Posts: 152 | Location (City & State): Napoli | Registered: 26 December 2004
I would be very happy if Alitalia went into bankruptcy. As an Italian taxpayer, I resent the fact that a million euros a day of our money goes into propping up such an inefficient and corrupt organisation. I'd much rather the money went to health care, education or cleaning up parks in Rome for example.
I agree with idealab - it's just sad to watch the unions "slit their own throats". Don't they understand basic economics? No profit means job cuts and/or salary cuts. That's life once you no longer have the state propping you up.
Originally posted by jenna: Bankruptcy= cheap buy of the airline for someone like Berlusconi.
But he's trying to save the airline, ha ha, probably, just looking for some way to buy the stock at a fire sale, then sell off the planes at a big profit.
Let's face it - there are only two things that are really BAD for Alitalia if they remain in their present form after any 'possible' take over...
1. The involvement of the Italian trade unions
2. The continuing employment of many of the current Italian workforce.
And NO - I'm not anti-Italian, but rather pro-common sense.... The Italians who are employed in such jobs are, and have been for decades, protected by the trade unions who feel that it is still acceptable in this day and age to 'defend the indefensible'....
If the unions can change that fixed mind set, and the workers realise that their jobs are only safe as long as their attitude to work and customer service is paramount, then something may be worth salvaging from what was once the Pride of Italy - it's own airline!
And though it might sound a bit daft...now might be just the time to buy into Alitalia and then just sit back and wait patiently!
Originally posted by jenna: Bankruptcy= cheap buy of the airline for someone like Berlusconi.
But he's trying to save the airline, ha ha, probably, just looking for some way to buy the stock at a fire sale, then sell off the planes at a big profit.
Well they have a pretty old fleet (a lot of MD-80s) and they lease a lot of their other planes (hence the fear that they might stop flying altogether in the next few weeks as they will not be able to pay the leases). But I agree that he probably has a way of making money out of it.
Posts: 32 | Location (City & State): Roma, IT | Registered: 15 January 2007
Originally posted by jenna: Bankruptcy= cheap buy of the airline for someone like Berlusconi.
But he's trying to save the airline, ha ha, probably, just looking for some way to buy the stock at a fire sale, then sell off the planes at a big profit.
Well... Berlusconi style is whatever will make him the most money+ power (i.e.: not whatever is best for Italy)... and so I wonder whether those who vote for him are aware of this???
Well... Berlusconi style is whatever will make him the most money+ power (i.e.: not whatever is best for Italy)... and so I wonder whether those who vote for him are aware of this???
The Italian electorate has already lived under Berlusconi's rule from 2001-2006. I don't like him, but the majority of Italians say they'll vote for him week after next. As Filomena says "Well, it is their country isn't it."
Luckily I saw that Bill had already posted the link. There's nothing inherently wrong with unions protecting workers interests, but 10 of them, all with no long term view? As for making employees be 'residente' in Rome - it's hard to factor in such stupidity.
I think the crunch, when it comes will happen very rapidly. I certainly wouldn't use Alitalia at the moment, the leasing companies will also be getting nervous. All it needs is a fuel supplier or airport to ask for their money up-front and they'll be a wholesale crisis of confidence.
Posts: 719 | Location (City & State): Valle d'Aosta | Registered: 24 November 2005
Well... I hope Alitalia doesn't go bankrupt before my boyfriend flies back to Italy on April 13th (with Alitalia...). My mom returned from Kauai with ATA 5 days before the airline went out of business, so we avoided disaster there & hopefully our luck won't run out.
Alitalia is in an alliance with, among others, Delta and Continental, 2 US carriers. I wonder if this US-based non-renewal scheme would impact a non-US airline allied with US ones.
In other words, how would this affect travellers on Alitalia to and from the US? I doubt it would have any effect at all on any other route.
Posts: 929 | Location (City & State): From Lille to Torino | Registered: 12 January 2008
Because the NON renewal means LESS protection for consumers, it does have an impact. I don't know if it would affect Alitalia customers, though, but it seems using credit cards for air purchases does give limited protection.
Posts: 187 | Location (City & State): Roma | Registered: 04 November 2005
Expats in Italy Forum 
As an Italian taxpayer, I resent the fact that a million euros a day of our money goes into propping up such an inefficient and corrupt organisation. I'd much rather the money went to health care, education or cleaning up parks in Rome for example.