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Alitalia: The next one to go bust?

Travel Forums Europe Alitalia: The next one to go bust?

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1. Posted by Hien (Moderator 3906 posts) 8y

Quoting BBC NEWS

Alitalia 'running out of fuel'

Italy's national airline, Alitalia, may have to cancel some flights because of a lack of funds to buy fuel, a top official has warned.

2. Posted by Daawgon (Travel Guru 1993 posts) 8y

I seriously doubt that Alitalia will go under. At one time Air France was interested in buying them, then backed out, but Italy's whole reputation rests on Alitalia, and I seriously doubt that the Pope's airline will be allowed to go under.

3. Posted by GregW (Travel Guru 2635 posts) 8y

I used to think that it would be unlikely to see Alitalia go under, but now I am of the opinion that Alitalia will not survive. There doesn't appear to be any airline willing to come in and purchase them, and I don't think there is much more that the Italian government can do at this point. I would predict that Alitalia will probably disappear, and then sometime in the future a new Italian airline will be launched with no debt and newer planes.

Greg

4. Posted by Sam I Am (Admin 5588 posts) 8y

I was alerted to a betting site (Paddy Power, annoying pop up at beginning) with odds on the next airline going under. You really can bet on everything, can't you?!

Anyway, looks like Alitalia gets worst odds right now, kind of unsurprising!

5. Posted by bex76 (Moderator 3713 posts) 8y

Apparently Alitalia can't guarantee any more flights after today. I'm surprised that the Italian government can't/won't do more to save the national airline, and similarly that SAS are teetering on the brink of going bust too.

6. Posted by GregW (Travel Guru 2635 posts) 8y

There is some hope for Alitalia. Some of the Unions have agreed to deals which would see CAI take over the airline's profitable operations and trim the airline to 12,500 staff. Four of the nine unions have agreed, but the pilots and flight crew are still not in agreement with the offer.

The BBC is now reporting that the airline could fold as early as next week without a deal in place.

Greg

7. Posted by GregW (Travel Guru 2635 posts) 8y

Even while the pilots and 4 other unions rejecting the latest deal, as strike against Alitalia caused them to cancel 40 flights.

The investor group looking to invest in Alitalia is threatening to pull out as early as Thursday unless unions will agree to the buyout plan.

As such, Alitalia has given the unions an ultimatum, accept the deal by 3:50 pm (1350 GMT) on Thursday or the airline faces bankruptcy.

Things are not looking good at this point.

Greg

8. Posted by GregW (Travel Guru 2635 posts) 8y

3:50 came and went with no deal, so the investor group has pulled out. That leaves Alitalia very close to the edge. The government is saying that they will fly normally this weekend, but beyond that is a big question mark at this point.

The latest from AP has Italian Premier Silvio Berlusconi saying that "the situation is dramatic. We could be facing an abyss."

9. Posted by Hien (Moderator 3906 posts) 8y

Quoting BBC NEWS

Alitalia airline cancels flights

Alitalia cancels a number of flights from Rome's Fiumicino airport, increasing fears that it may soon go into liquidation.

10. Posted by GregW (Travel Guru 2635 posts) 8y

Amazingly given how dire the news was over the last few weeks, but probably not so surprising if you consider what the Italian government has done to prop up the airline in the past, somehow Alitalia has survived, at least for a little bit longer.

CAI, after abandoning their offer, were persuaded to come back to the table, and all the unions eventually agreed to the offer (though some tough negotiations still remain). Further, it looks like either Air France/KLM or Lufthansa will take a "minority" stake in the airline (in Lufthansa's case, it could be as much to 49.9%, which is just a .1% away from not being a minority).

The way things are going, there will probably only be three airlines left in Europe - Lufthansa, Air France/KLM and British Airways. Lufthansa already own Swiss and SN Brussel and are on track to buy bmi, SAS and Austrian! The merge of Air France / KLM is one of the largest airlines in the world!

Greg