Alitalia (3rd) (Rome) is upset about the airport’s continued focus of attracting low-cost operators at its Rome Fiumicino (FCO) hub and the current neglect for the infrastructure. The flag carrier is now threatening to move its hub elsewhere. The airline issued this statement about the current situation at FCO:
The damage to Alitalia by the consequences of the fire which broke out on May 7 at Fiumicino Airport amounted to 80 million Euros to date.
The recent reopening of Terminal 3 has marked the end of the emergency phase but not the end of many problems and limitations that continue have heavy effects on airport operations. Alitalia will calculate the total amount of damages only when the airport will operate at pre-fire standards.
Alitalia is the only airline to have its hub in Fiumicino. About 50% of the total number of flights in Fiumicino are Alitalia. Alitalia is by far the airline most affected from the consequences of the fire.
“We had a difficult period due to an event that affected us deeply. – declared Silvano Cassano, Chief Executive Officer of Alitalia -. In this period we have given up any controversy and we focused entirely on the service to customers, to reduce the inconvenience.”
Alitalia has completed an initial balance of the damages for the cancellation of thousands of flights and for a multitude of operational problems that have highlighted the fragility of the airport infrastructure as a whole. Alitalia will seek compensation for the damage it sustained, which so far totals 80 million euro.
“Our relaunch plan is complex, and in one of the most competitive sectors in Italy and in the world – continues Cassano – Fiumicino Airport in its current state is not an appropriate infrastructure to serve as the hub of an airline with our ambitions“.
“The problems of Fiumicino come from years and years of inadequate investment and planning and are now structural, we hope there will be less attention to finance and more attention to the market and to passengers needs”.
“If Fiumicino will continue to focus on low cost carriers and mediocre services, Alitalia will be forced to shift its growth elsewhere”.
Top Copyright Photo: Marco Finelli/AirlinersGallery.com. Boeing 777-243 ER EI-DBL (msn 32781) arrives at the FCO hub wears special “Franciacorta” markings as a salute to Alitalia’s Expo 2015 partner.
Alitalia (3rd) (Rome) today issued new strategy with its new partner Etihad Airways (Abu Dhabi). The new strategy will also include a new brand and livery for 2015.
The company issued this statement:
The strategy for the new Alitalia was unveiled today, with an unequivocal commitment by the new executive team and strategic investors to reinvent the airline.
Alitalia will introduce new routes, new product and service standards, a new cost management strategy and new branding, as the foundations to build a premium global airline representing the best of Italy.
The new Alitalia commenced operations on January 1, 2015, following the completion of equity investments by Etihad Airways and Alitalia’s existing shareholders. The new company’s Board meeting yesterday ratified the business strategy, which was outlined today by Luca di Montezemolo, Chairman of Alitalia, Silvano Cassano, Chief Executive Officer of Alitalia, and James Hogan, President and Chief Executive Officer of Etihad Aviation Group and Vice Chairman of Alitalia.
Luca di Montezemolo said: “The energies, passion and expertise I have experienced at Alitalia in recent weeks do not leave any doubt that the airline we’re unveiling today will become once again a premium Italian airline recognised worldwide. This is why I believe the people in Alitalia are a pillar of the history we’re about to write.
“Our priority is to put the customer at the centre of everything we do. And to do that, we will change many things, starting with the way we work. We need to work as one united team to achieve this great common goal.
“The revitalized Alitalia we envision and have started building, will be an asset to this country, and a driver to support the growth of our tourism and our business.”
James Hogan said Alitalia’s future will rely on major change throughout the organization.
“In a market still beset by the continuing Eurozone crisis, anything other than rapid, decisive change is simply not an option.
“This is the right strategy, with the right management team to lead it.
“But there should be no doubts at all: we have made a commercial investment that must deliver a commercial return.
“We’ve invested in the new Alitalia because we believe it can flourish again. It will only succeed if there is 100 per cent support from everyone. The coming months and next few years will not be easy, but if everyone pulls together as one team, Alitalia can grow again.”
Mr Hogan said that Alitalia’s major investors had set a clear deadline for the airline to deliver profitability by 2017.
Outlining the airline’s new strategy, Silvano Cassano said: “The new Alitalia strategy is serious, it is exciting and it is commercial. It is a strategy for success – if everybody delivers.
“It is serious because it has been developed over months by an executive team and a set of partners that share extensive and in-depth industry expertise.
“It is exciting because of the vision and ambition that we have for the brand and for the business. This is the chance to create a new Alitalia, one which Italy can truly feel proud of.
“And it is commercial because that is the only way this can work. Every single employee at Alitalia has to get into a commercial mindset, one in which the basis of every decision is: Does this add value to our customer? Does it add value to our company? And does it help us to deliver a financial return?
“We need to create a performance-based, customer-focused culture which results in a sustainably profitable airline, one which can grow over the long term.
“The investment we have received from our shareholders gives us the opportunity to do that.”
Mr Cassano added: “A successful Alitalia means jobs, it means trade and it means tourism. It means a major impact on the Italian economy.”
The key elements of the new business strategy include:
A new three-hub strategy in Italy. Milan Malpensa will increase long-haul services, while Milan Linate will increase connectivity with partner airline hubs. Rome Fiumicino will grow long-haul flying and continue to expand short and medium haul flying to maintain relevance to the Italian market.
Schedules across the network will be optimized to allow better connectivity, as well as increased codesharing with existing and new partners.
New routes from Rome include Berlin, Dusseldorf, San Francisco, Mexico City, Santiago (Chile), Beijing and Seoul, with increased flights to New York, Chicago, Rio de Janeiro and Abu Dhabi.
Alitalia will also add 13 weekly flights from Milan Malpensa, with daily services to Abu Dhabi, four flights a week to Shanghai, and additional flights to Tokyo.
There will also be increased connectivity with Etihad Airways’ hub in Abu Dhabi, with daily services from Venice, Milan, Bologna and Catania, as well as additional flights from Rome, all allowing onward connections to the Middle East, Africa, the Indian subcontinent, Southeast Asia, China and Australia.
Venice will be the only Italian airport, in addition to Rome Fiumicino and Milan Malpensa, from which Alitalia will operate services to Abu Dhabi with long-haul aircraft.
While exploring further opportunities to deepen the relationships with Skyteam members and in particular Air France/KLM and Delta, there will be a major new partnership with Airberlin and Niki, as well as increased connectivity with Etihad Airways. There are also plans to work more deeply with Air Serbia and Etihad Regional. These partnerships will increase customer choice across many markets.
Alitalia and Etihad Airways and its partners are exploring opportunities to improve jointly fleet efficiency. For example, Alitalia is in the process of relocating 14 Airbus A320s to Airberlin, and looking into options with Etihad Airways to acquire additional wide-body aircraft for Alitalia. Alitalia will also have opportunities to receive aircraft from Etihad Airways’ existing fleet orderbook.
A new customer-first culture, with new product and service standards across the airline. A new Customer Excellence Training Academy will deliver skills to all customer-facing staff, while customers will experience traditional Italian hospitality, new food service options, new-look lounges in Rome, Milan Malpensa and Milan Linate.
Alitalia will launch a new brand and visual identity, covering aircraft, uniforms and all other customer touch-points. While the name will remain unchanged, the new branding will seek to capture and embody the essence of Italy.
Copyright Photo: Michael B. Ing/AirlinersGallery.com. The updated version (in 2006) of the basic 1969 livery will soon be history as Alitalia replaces it with a new Italian theme and look. Alitalia is also going to receive new aircraft types for its long-range routes from partner Etihad Airways. Boeing 777-243 ER EI-ISD (msn 32860) arrives in Los Angeles.
Alitalia aircraft slide show:
Video: Join Luca di Montezemolo, Chairman of Alitalia, Silvano Cassano, Chief Executive Officer of Alitalia, and James Hogan, President and Chief Executive Officer of Etihad Aviation Group and Vice Chairman of Alitalia, as they outlining the strategy for a new Alitalia.
Alitalia (2nd) (Rome) on April 3 launched nonstop service between Venice and Tokyo (narita). The new route will operate two days a week: AZ 788 will depart on Thursdays and Saturdays at 1.30 PM and will land in Tokyo at 9.40 AM (local time) the following morning. From Tokyo Narita, AZ 789 will depart every Wednesday and Friday at 12.25 PM (local time) and will arrive in Venice at 8.20 PM.
Alitalia has a total of 19 weekly frequencies to Japan: 14 frequencies a week, of which 7 are from Rome Fiumicino, 5 from Milan Malpensa and 2 from Venice, which connect these three Italian airports with Tokyo Narita; 5 flrequencies a week connect Rome Fiumicino with Osaka.
Venice has become the third Italian city, after Rome and Milan, to host intercontinental flights operated by Alitalia and, above all, for the first time, Alitalia offers the citizens of Venice and the Veneto region a direct service to the Far East.
The service between Venice and Tokyo will be operated by one of Alitalia’s Boeing 777-200 ER aircraft, the flagship of its long-haul fleet, which can accommodate 293 passengers on board divided into three classes of travel: Magnifica business class (30 seats), Classic Plus premium economy class (24 seats) and Classica economy class (239 seats).
In other news, Alitalia has canceled its order for 12 Airbus A350-800s and 12 options. The order was originally placed in June 2008 by Air One.
Copyright Photo: Reinhard Zinabold/AirlinersGallery.com. Boeing 777-243 ER I-DISO (msn 32857) taxies at Toronto (Pearson).
Air France-KLM Group (Air France and KLM Royal Dutch Airlines) (Paris and Amsterdam) with 25 percent of the stock is the key to Alitalia’s (2nd) (Rome) survival. According to this report by Reuters quoting internal sources, the group has stated privately the Alitalia rescue plan and capital infusion “fell short of its requirements, particularly in terms of debt restructuring.”
However, the source added that Alitalia was “of strategic interest” to Air France-KLM.
Meanwhile Willie Walsh of the International Airline Group (British Airways, Iberia and Vueling Airlines) has spoken out against the state aid for Alitalia and has called on the European Commission to stop the Italian government’s efforts to prop-up the failing flag carrier.
Alitalia (2nd) (Rome) on April 2, 2014 will launch a new twice-weekly route linking Venice with Tokyo (Narita). The new route will be operated with Boeing 777-200 ERs according to Airline Route.
In other news, Italian transport minister Maurizio Lupi expects Air France-KLM to strongly reaffirm the value of Alitalia and strengthen its role according to a report by Reuters. AF-KL own 25 percent of AZ and will soon announce its intention with the Italian flag carrier.
Alitalia (Compagnie Aerea Italiana) (2nd) (Rome) today (July 5) joined the Air France-KLM Group (Paris and Amsterdam) and Delta Air Lines (Atlanta) as a member of the trans-Atlantic joint venture. Launched in April 2009, the multi-party agreement created a single, coordinated network for customers flying across the Atlantic, allowing the member airlines to share revenues and costs on their trans-Atlantic routes.
Through the four-way joint venture, passengers have convenient access to the world’s largest trans-Atlantic network, which offers almost 250 flights and approximately 55,000 seats each day, now including 20 daily trans-Atlantic flights to 5 U.S. destinations from Rome and Milan Malpensa airports. With Alitalia’s addition, the joint venture represents approximately 26 percent of total trans-Atlantic capacity, with annual revenues estimated at more than $10 billion USD.
Rome joins Amsterdam, Atlanta, Detroit, Minneapolis, New York-JFK and Paris-CDG as the core hubs of the joint venture, with additional trans-Atlantic service from Cincinnati, Milan Malpensa, Memphis and Salt Lake City. Wherever traffic rights permit, the airlines offer customers codeshare service between the United States and the European Union, and in many cases beyond, creating one network for seamless airline-to-airline connections between points in North America and the European Union.
The joint venture’s geographic scope includes all flights between North America and Europe, between Amsterdam and India and between North America and Tahiti.
Governance of the joint venture will be equally shared between Alitalia, the Air France-KLM Group and Delta. Alitalia representatives will immediately join the joint venture’s 11 working groups responsible for implementing and managing the agreement in the areas of network, revenue management, sales, product, frequent flyer, advertising/brand, cargo, operations, information technology, communications and finance. Alitalia also will be included in all joint venture initiatives, including joint sales contracts, which launched in January 2009.
Alitalia’s addition to the joint venture is effective April 1, 2010 as part of a long-term agreement effective until at least March 31, 2022.
Copyright Photo: Giorgio Ciarini. Boeing 777-243 ER I-DISU (msn 32858) climbs away from Milan (Malpensa).
Alitalia (2nd) (Compagnie Aerea Italiana) (Rome) will return to Los Angeles (for the third time) on June 5, 2010. The restored route will be operated five times a week on the FCO-LAX route with Boeing 777-200 ERs.