Tag Archives: Alitalia (2nd)

Alitalia’s board approves the new plan, Air France-KLM vote against it

Alitalia’s (2nd) (Rome) board of directors yesterday approved a revised business plan, promising “severe cost cuts” to make the Italian airline more profitable but did not include specifics according to this report by Reuters.

Air France-KLM Group, which owns 25 percent of the Italian carrier, voted against the plan but it did not address the long-term debt issue.

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Copyright Photo: Ton Jochems/AirlinersGallery.com. Alitalia’s Boeing 777-243 ER EI-ISB (msn 32859) turns on the taxiway at Los Angeles International Airport.

Alitalia:

Alitalia planned job cuts unlikely to persuade Air France and KLM to put in more cash

Alitalia (2nd) (Rome) is facing a major decision today at its board meeting. According to this report by Reuters, Alitalia’s CEO Gabriele del Torchio, a turnaround specialist, is expected to unveil his plan. The drastic measures may include up to 2,000 job cuts and salary cuts.

However the cuts are unlikely to persuade major shareholder and board member Air France-KLM to put any more capital into the failing flag carrier. Alitalia needs a $400 million infusion to keep flying. The group has already zeroed-out its investment.

Read the full report: CLICK HERE

Copyright Photo: Dave Glendinning/AirlinersGallery.com. Alitalia’s Embraer ERJ 190-100LR EI-RNB (msn 19000479) taxies at London (Heathrow).

Alitalia:

Air France-KLM writes off the value of its 25% share in Alitalia

Air France-KLM Group (Air France and KLM Royal Dutch Airlines) (Paris and Amsterdam) have written off the value 25 percent stake in Alitalia (2nd) (Rome) yesterday (October 30) raising doubt over its willingness to invest further in the struggling carrier according to this report by Reuters.

Air France-KLM posted a 119 million euro charge for its 25 percent stake in Alitalia.

What is the future for Alitalia with Air France and KLM?

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Air France:

KLM:

Alitalia:

Air France is upset with Alitalia

Air France‘s (Paris) CFO Philippe Clavia complained in a letter to Alitalia (2nd) (Rome) about how the Italian airline failed to inform its airline partners, namely the Air France-KLM Group, about key meetings concerning a new capital infusion. Although the group finally voted for the recent infusion of capital, Air France is upset about how the whole event was handled according to this report by Reuters.

Further, Air France-KLM was not provided any written information, just “orally and in a cryptic way”, often just in Italian, the newspaper Il Messaggero reported, quoting the letter.

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Copyright Photo: Christian Volpati/AirlinersGallery.com. Boeing 747-428 F-GITH (msn 32868) of Air France prepares to taxi from the Charles de Gaulle (CDG) Paris hub. Air France is planning to phase out its last Boeing 747-400 passenger aircraft in 2016.

Air France:

Alitalia:

Air France-KLM: The Alitalia business plan is not suitable

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.

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Copyright Photo: Michael B. Ing/AirlinersGallery.com. Alitalia’s Boeing 777-243 ER I-DISU (msn 32858) climbs from the runway at Tokyo (Narita).

Alitalia (2nd):

Air France:

KLM:

Air France-KLM to decide today on the Alitalia cash injection

Air France (Paris) and KLM Royal Dutch Airlines (Amsterdam) will decide today at a meeting of Alitalia’s (2nd) (Rome) shareholders if it will add any more capital into the struggling carrier. According to this report by Reuters, Alitalia’s shareholders will vote today on a $407 million capital increase to keep the Italian carrier flying. Alitalia was thrown a lifeline on Friday to allow it to keep flying through the weekend.

Le Monde reported Air France-KLM’s conditions now include “a new strategy, a halt to route expansion and no new aircraft purchases as Alitalia addresses its debts” according to Reuters.

Air France-KLM, which own 25 percent of Alitalia’s shares are unlikely to inject any more capital as the group is going through a painful restructuring.

Read the full report: CLICK HERE

Alitalia (2nd):

Air France:

KLM:

Alitalia is thrown a lifeline, will continue to fly (for now)

Alitalia (2nd) (Rome) received good news yesterday (October 11) when its board of directors (including Air France-KLM) approved a capital increase as part of the Italian government’s sponsored 500 million euro bailout plan according to this report by Reuters. However with the airline losing an estimated 10 million euros a day, this amount will be exhausted in the next two months. Clearly the airline needs another financial overhaul to reduce costs and increase revenue. The Italian government has also called for Alitalia to join an alliance.

Read the full report: CLICK HERE

Copyright Photo: Paul Denton/AirlinersGallery.com. Embraer ERJ 170-200LR (ERJ 175) EI-RDB (msn 17000331) climbs away beautifully from Geneva.

Alitalia:

Alitalia needs more money to keep flying this weekend

Alitalia (2nd) (Rome) continues to bleed money. According to this report by Reuters, the flag carrier needs almost $680 million to avoid bankruptcy again. Its main fuel supplier has threatened to stop making fuel deliveries this weekend.

The Italian government, which considers the failing airline a “strategic asset”, has now structured a deal where state owned Poste Italiane through Mistral Air (Rome) would provide a partial capital float in the form of a capital increase to keep the passenger airline flying.

Alitalia continues to lose money and has not been profitable since 2002. The causes of continued losses has not been fully addressed due to political meddling.

The government now wants “radical change” at the airline and wants the current stockholders to share in the capital increase.

Stockholders Air France (Paris) and KLM Royal Dutch Airlines (Amsterdam), which control 25 percent of the shares, has mainly been mum of the recent government calls for action and has continued to ask for more financial information.

The Italian government would like Air France-KLM to raise their stakes in Alitalia but this is unlikely to happen since Air France is restructuring itself.

Can Alitalia survive? Will any of the Gulf carriers (Etihad Airways?) come to the rescue? Will any of the other SkyTeam partners help? Stay tuned.

Read the full report: CLICK HERE

Top Copyright Photo: Ken Petersen/AirlinersGallery.com. Up-close runway action of Alitalia’s Boeing 767-35H ER EI-DBP (msn 26389) in the SkyTeam colors at New York (JFK).

Alitalia (2nd):

Mistral Air:

Bottom Copyright Photo: Andi Hiltl/AirlinersGallery.com. Mistral Air’s Boeing 737-348 EI-BUE (msn 23810) prepares to land at Zurich.

Alitalia’s Airbus A320-200 EI-EIB makes an emergency landing in Rome

Alitalia’s (2nd) (Rome) Airbus A320-216 EI-EIB (msn 4249) while being operated on operating flight AZ 63 from Madrid to Rome (Fiumicino), the crew was forced to make an emergency landing at FCO late last night (September 29) after the right main gear failed to deploy. The 151 passengers and crew members safely evacuated the aircraft using the emergency chutes with no injuries.

Alitalia issued this statement (translated from Italian):

Rome, September 29, 2013:

This evening at 21:04, flight AZ 063, coming from Madrid, made an emergency landing in Fiumicino Airport due to failure in the right main landing gear.

No injuries also thanks to the skill of the commander of the flight, with over 15,000 flight hours in the Alitalia Group and previously as a military pilot.

The plane is an Airbus A320, constructed in June 2010.

Read the full story from The Telegraph: CLICK HERE

Alitalia (2nd):

Alitalia pleads for more capital

Alitalia’s (2nd) (Rome) first half loss increased to over $398 million. The struggling Italian carrier is proposing a capital infusion of $135 million according to this report by Reuters which would only delay the ultimate fate. The Air France-KLM Group which controls 25 percent of the shares, voted against the capital increase. AF-KL has also asked for additional information about AZ before investing any more money. AF-KL has their own financial challenges.

The capital infusion does not solve the underlying financial problems of high-cost Alitalia. As we asked before, is Alitalia headed towards another bankruptcy? This time, their previous savior, the Air France-KLM Group, given this vote, is less likely to help Italian flag carrier given their own financial condition.

Meanwhile there are reported interested parties in China and Russia that could be interested in Alitalia. This Italian opera is not over.

Read thee full report: CLICK HERE

Copyright Photo: Rolf Wallner/AirlinersGallery.com. Airbus A321-112 EI-IXG (msn 516) approaches the runway at London (Heathrow).

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