Alitalia Aircraft - The Italian government has presented plans to reboot the airline with only 6,500 of its more than 10,000 employees and only 70 planes.
The Italian government presented to the European Union this week plans to relaunch Alitalia, the country's flagship airline which is in serious financial crisis. The group studying solutions for loss-making companies, formed by members of the Ministry of Economy, managers and advisers, defined that the "new Alitalia" would be smaller, with a maximum of 70 aircraft, compared to more than 110 aircraft . today.
Alitalia Aircraft
This new plan is more aggressive than the previous plan that provided a fleet of 93 aircraft, but was rejected by the European Commission because it did not take into account the post-Covid-19 crisis panorama of the air sector, which is 40% showed lower demand. than before.
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The most controversial point of the proposal involves employees. The new airline is expected to absorb just 6,500 of the more than 10,000 people it will hire, who will be rehired on different terms.
The meeting, which was held in Brussels on Monday, is only a starting point for further negotiations until the plan is approved. The European Union's fear is that once it receives the green light, the project will undergo modifications to "make it more socially acceptable for Italians".
According to the Italian government, the target for the new Alitalia to start operating between October and November this year is considered strategic for the airline to prepare for the summer of 2021, when the highest revenue in air transport in Europe.
If these plans come to fruition, it will be the second revival of the Alitalia brand. In January 2009, the "new" Alitalia began flying after the original airline filed for bankruptcy with the aim of keeping alive the denomination created in 1946, but before long the airline also started making huge losses in the following years suffer.
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The first leaked rumors from government sources indicated a much smaller carrier, with a maximum of 25-30 aircraft, focused on short- and medium-haul with little long-haul service, but this hypothesis was categorically denied by the government. during the first virtual meeting with the union last week.
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The airline will be smaller than it is now, with a maximum of 70 aircraft compared to its current fleet of 113 (which has already shrunk to 103 at the end of 2020 due to multiple late leases). As of January 2020, Alitalia had 72 leased aircraft out of a total of 113, representing 64 percent of the fleet: this is one of the highest proportions of leased aircraft among traditional airlines in Europe, requiring a monthly expenditure of around 19 million euros , according to an Italian newspaper
Alitalia currently operates a limited domestic and international schedule from hubs in Rome Fiumicino and Milan Malpensa, mainly using full aircraft, and plans to increase its operations to 608 weekly flights from 6 April from the 269 weekly flights currently operated . .
Milan's Linate Airport, a business airport just seven kilometers from the city center where Alitalia controls more than 70 percent of take-off and landing slots, has been closed by Italian authorities following restrictions on personal movement imposed to combat the COVID-19 pandemic. contains and is not scheduled to reopen until May 1st.
The nationalization process has accelerated since funds in Alitalia's accounts began to dry up due to the current extremely low demand experienced by most airlines around the world. Current booking levels for all airlines still flying are expected to be around 90 percent below what is usually experienced at this time of year, posing an urgent cash flow problem for Alitalia.
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For this reason, the Government of Italy included in the Presidential Decree an injection of emergency funds of 500 million euros intended for "airlines operating public service routes." As Alitalia is the only airline in Italy operating under a public service obligation agreement, covering flights connecting Rome and Milan with Cagliari and Alghero airports on the island of Sardinia, Alitalia will be the sole beneficiary. that 500 million euros.
However, other airlines with Italian air operator certificates such as Lufthansa subsidiary Air Dolomiti, Blue Panorama and Neos filed a complaint with the Italian Parliament, financial newspaper.
Report. Their goal is to get part of the funding, because the spirit of the initiative is to provide a lifeline for the entire Italian air transport sector.
Meanwhile, the special commissioner currently running Alitalia, Mr Giuseppe Leogrande, has obtained permission from the government to lay off a further 2,900 employees (on salary) until October 31, reports Milano Finanza. This brings the number of employees currently out of work (but still receiving up to 80 percent of their salary due to further government subsidies) to 6,860, more than half the salaries.
File:alitalia Airbus A319 (47339560402).jpg
Through the nationalization process, the airline will also create a "bad company" that will absorb all of the airline's current liabilities, estimated at between 0.8 and 1.2 billion euros, which will not be transferred to the new Alitalia and either will be borne by the Italian taxpayer or written off by creditor.
Italian political parties justify the high cost of operations by the need to keep airlines operating in the interest of the country during emergencies, such as the current COVID-19 epidemic, and to continue bringing tourists to Italy to this important sector to maintain. in the Italian economy.
Although Alitalia is currently operating several repatriation flights on behalf of the government to bring back several Italian citizens stranded around the world due to mass flight cancellations due to the current pandemic. Other Italian airlines also operate those flights, and it would not be difficult in the current climate to find an aircraft available to operate those flights on a charter basis.
Moreover, Alitalia's current market share of international traffic to and from Italy is around eight percent, therefore the airline does not play a significant role in the country's tourism industry.
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In early April, the Government will meet again with the unions to discuss the new Alitalia workforce level, which should be significantly lower than the current 11,000 units.
Vanni fell in love with commercial aviation during his undergraduate studies in Statistics at the University of Bologna, when he was preparing his thesis on the effects of deregulation in the US and European aviation markets. He then pursued his passion further by obtaining a Master's Degree in Air Transport Management at Cranfield University in the UK, followed by holding various management positions at various start-up airlines in Europe (Jet2, SkyEurope, Silverjet). After moving to Canada, he was business development manager for IATA for nine years before turning to another passion: sports writing.
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Referring to a December 18 press conference held by the newly public company, which outlined a five-year plan for the airline,
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