Friday, 31 March 2017 08:20

ALITALIA …on a flight without return

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When in 2014 Etihad Airways bought 49% of the Italian carrier leaving the Italians 51%, it had big development plans.

Firstly, it wished to expand the routes, reducing the intra-Italian work.

At the same time, it had goals and an inflight and in the airports service of extremely high quality.

Within three years from the above purchase, the Arabs wanted to wipe the political interference as well in the work carrier, to improve the deplorable financial management and to renew the very old fleet.

The training sessions for all staff were pressingly intensified.

Unfortunately from 23.5 approx. million passengers carried in 2014, last year, 2016, had a decrease of about 500,000 fewer passengers.

For this reason the load factor remained at approximately 75%, while the major competitor Ryanair, reached 95%.

The competition, though, which dramatically harms ALITALIA is the domestic flights, where it is fighting hard, unequal and detrimental to LOW – COST – CARRIERS (LCC), spending about 18% more on fuel & leasing.

This is because “the old sins” do not allow advantageous negotiation with the lessors.

Certainly, at the same time, wrong decisions are included of the company of Abu Dhabi to create a network of disparate air to compete its true rival Emirates Airways with a
carryover of the passenger traffic at Abu Dhabi

Of course the low cost airlines override other parameters, such as overnight accommodation of crews in accordance with the applicable provisions, which damage them catalytically.

Finally the "subsidiary" is dying daily, it flies with a one way ticket.

What will the mother company do?

Will it continue the unequal battle, or will it sell further more with large loss what it dreamt as a profitable business?

We are confident based on our long-standing involvement in the field of AVIATION that it will soon sell, taking a serious lesson from this size risky business project.