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ITA Airways Will Return To Use The Alitalia Brand: Wonder Why?
ITA Airways recently announced that it aims to reintroduce the Alitalia brand in its operations beginning in March of this year. In this context, Alfredo Altavilla, president of ITA Airways, confirmed it to the Italian Parliament’s Transport Commission during a hearing. According to the Italian newspaper Il Corriere Della Sera, Altavilla told the parliament transport inquiry that “as in other European airlines that have more than one brand under the same group,” ITA aims to reincorporate Alitalia, though there are no reports of a low-cost division using the brand or that the ITA model will change to LCC, leaving the legacy operation to the traditional brand name. However, it is unclear if it will be utilized for long-distance operations or domestic or intra-European flights. It is important to remember that seeing the Alitalia brand fly in European skies would be a setback for the European Union’s competition defence authority, as it only a year ago ordered the dissolution of the old company and the formation of a new company as a necessary condition for allowing contributions from the Italian state. Altavilla now claims that “we always had the goal of using the name to integrate it into the commercial offer” after months of claiming that ITA paid 90 million euros “to preserve the brand” and prevent a competitor from buying it. The re-incorporation of the brand may be related to making ITA more appealing to secure an agreement with one of Europe’s most prominent companies before the self-imposed deadline of June 30, 2022. The process of soliciting bids for this critical alliance will formally begin in February, when the data room will be opened, allowing interested parties to learn in-depth about the company’s results throughout this period of operation. The following numerals are missing: 170 million in losses – “anticipated,” according to Altavilla – and a confusing picture as Omicron continues on the horizon. “An alliance is required for ITA Airways to remain in the market, but it cannot be a facade based on fake commercial agreements: it must be proven in a capital position,” Altavilla explained. On the other hand, ITA is abandoning the strategic hub of Milan Malpensa to focus on what it can do: operate in Rome. An alliance could provide enough traction to reclaim it before other players exploit the weakness and consolidate in northern Italy. Regarding Milan Malpensa, the airline CEO Fabio Lazzerini stated that he was “aware” of the airport’s importance and confirmed the launch of the Malpensa-JFK flight for the summer season, but that “the size of ITA is linked to the size of the market, which pushes us to focus on the Rome Fiumicino hub so as not to waste energy.”
New deal alert: Lufthansa to buy 40% stake in Alitalia’s successor ITA
Lufthansa, Germany’s largest airline, is set to buy a 40% stake in Alitalia's successor ITA Airways and a deal could be unveiled next week, reported Bahrain News Agency (BNA), citing Italian daily Il Foglio. ITA Airways started flying on Oct. 15 with nearly 2,300 employees and a fleet less than half the size of that operated by Alitalia, the 75-year old one-time symbol of Italian style and glamour, which passed through a dizzying succession of restructurings and changes of ownership. An ITA spokesperson said that the airline's top management would present a strategic plan to board on January 31, and a data room would be opened in the following days, as stated in a parliamentary hearing on Thursday. Sources said the Italian carrier was in contact with Lufthansa, British Airways and US-based Delta Air Lines for an equity partnership, adding that formal talks could start by the end of March, added the BNA report. According to Il Foglio, Lufthansa and ITA are very close to agreeing over some key terms of the deal, such as the role of Fiumicino airport as a hub for direct flights to Africa and some routes to the Americas. The deal will be subject to European Union approval. (Source: Reuters)
ITA replaces Alitalia in the SkyTeam Alliance
SkyTeam, the global airline alliance, has welcomed ITA Airways, Italy's new national carrier, to replace Alitalia. SkyTeam's 700 million customers will continue to enjoy seamless connectivity to important destinations throughout Italy with the addition of ITA Airways. Alitalia halted operations on October 14 and withdrew from the SkyTeam global airline association on the same day. SkyTeam and Alitalia Loyalty have decided to extend their relationship, allowing the six million MilleMiglia frequent flyer programme members to earn and redeem miles on selected SkyTeam flights, providing a wealth of opportunities and exclusive services. The airline will fill the void left by Alitalia's bankruptcy earlier this month. SkyTeam customers will continue to benefit from seamless connectivity throughout Italy as a result of the adjustment. Joining an airline alliance can be a time-consuming and challenging process. Airlines may need to be formally invited to join the alliance, and only well-established carriers are often selected. Even after acceptance, it can take months or years for membership to become official. However, given an airline's standing as an alliance member, the perks are frequently worth the effort. Instead of the customary hurdles that an airline must overcome, ITA appears to have been fast-tracked into the SkyTeam alliance. The alliance announced last week that it had welcomed its newest member. ITA will replace the void created by its predecessor Alitalia, which exited the alliance on October 14 when the airline ceased operations. SkyTeam Chairman Walter Cho stated of the new member, "For more than 20 years, the Italian market has been a cornerstone of SkyTeam's European network, and no other airline alliance connects Italy to the world better." We warmly welcome ITA Airways' decision to join our alliance and ensure service continuity for the millions of customers who pick SkyTeam as their prefered alliance to Italy." Frequent travellers of alliance members typically have access to reciprocal advantages when flying with another member airline. SkyTeam announced that it is collaborating with ITA Airways to reach an agreement on this. Surprisingly, SkyTeam disclosed that it is still collaborating with Alitalia's former loyalty programme. ITA is now offering a loyalty match scheme that covers Alitalia, mileage scheme members. According to the airline alliance, members of Alitalia Loyalty will be allowed to continue using the programme when flying with other carriers.
Ex-Alitalia flight attendants protest status
Dozens of former flight attendants from the defunct Italian airline Alitalia wore only their underwear in a silent, staged protest in central Rome on Wednesday. Italy's decades-old airline, which had been in financial trouble for a long time, flew its final trip on Oct. 14. The following day, a new airline, ITA, commenced operations, using some of Alitalia's planes. It also purchased the Alitalia brand; however, it will employ less than 3,000 of Alitalia's 10,000 employees. According to union officials, individuals who will work for ITA will be paid much less. Some 50 ex-flight attendants gathered in rows in a square atop Rome's Capitoline Hill, lowered their company shoulder bags to the cobblestone sidewalk, then slowly and in unison removed their overcoats, uniform jackets, skirts, and high-heeled shoes. For a few minutes, they stood barefoot, wearing only a slip, in quiet. Then they carefully gathered their clothes and shoes and exclaimed, "We are Alitalia!" Union leaders have urged the government to extend jobless benefits for up to five years.
Italy launches new national airline ITA and marks end of Alitalia
After operating for 74 years, Italy’s flag carrier Alitalia will no longer offer its services as it has been shut down for good after profound financial problems, especially provoked by the COVID-19 situation. Alitalia’s flight from Italy’s capital to Cagliari marked the final flight of this flag carrier, while from now on, the same will be replaced by Italia Trasporto Aereo (ITA). The president of ITA Airways, Alfredo Altavilla, said: “We have been born as a new Italian brand, and we have chosen to work only with Italian companies.” During the last 20 years, Alitalia has cost the country nearly €13 billion. The spread of the Coronavirus and its new strains provoked a devastating situation for the company. Due to the difficult situation caused by the virus, ITA will employ only 2,800 of its staff, while a large number of people are facing unemployment. Authorities in Italy have confirmed that ITA will be owned by the country’s government. The airline plans to start with 52 jets, while the number of aircraft will increase to 105 by the end of 2025. Initially, ITA will offer its services to 44 destinations, increasing to 75 by 2025. Alitalia recently was suffering a profound financial crisis, especially after the spread of the Coronavirus. Earlier this year, the Commission of the European Union approved a total of €73.02 million aid for Alitalia to help the airline recover from COVID-19 damages, after confirming that such a decision was in accordance with the EU State aid rules.
ITA-Alitalia charters an Airbus A330 to start operations
The first aircraft of Italia Trasporto Aereo to start operations is "Il Tintoretto", the Airbus A330 of over nine years provisionally borrowed from Alitalia to be used in test flights to obtain certifications from the National Civil Aviation Authority (ENAC). To confirm this are the photos provided to the Corriere della Sera and taken at Rome Fiumicino airport. It is one of the two aircraft: the other, also by Alitalia, is an Airbus A320 used for short and medium flights. Test flights are expected to be carried out next week, probably on Monday 16 August. The A330 with the livery of Alitalia bears on the left side, where there is the front tailgate used for embarking and disembarking passengers, a sticker with the ITA logo and the inscription immediately above "operated by". In the start-up phase, the newco will mainly use 52 aircraft that are part of Alitalia's fleet. At the end of 2022, the business plan plans to start renewing the machines by introducing new generation aircraft that can also consume and pollute less. According to the preliminary agreements with the European Commission, ITA can buy the aviation branch of Alitalia, including aircraft, by direct negotiation. But the mark — which is seen on aircraft — will have to be sold through a public tender, open to all and transparent. The last official flight, according to the specialized website Flightradar24, dates back to August 4th: the A330 took off from Rome Fiumicino and then returned to the same airport after 28 minutes. From the documents consulted by the Corriere, it emerges that the aircraft - "branded" EI-EJN - is the only Airbus A330 owned by Alitalia that received it in May 2012 directly from the manufacturer. In fact, the indication 'EI' shows that it is an aircraft registered in Ireland. And in fact, it is technically owned by A.P.C. Aircraft Purchase Company Ltd., one of Alitalia's Irish companies that, however, has a bumpy history with other foreign companies, which should push ITA to take other Alitalia aircraft for the first passenger flights. According to the assessments of the experts consulted by the Courier, an aircraft of that type ten years old at the end of July had a current market value of 18 million dollars, a net decrease of 53% compared to 38.6 million dollars in January 2020, before the coronavirus. ITA, however, intends to rent planes from Alitalia first and - when it renews the fleet - from leasing companies then: according to experts on the market the monthly rent of a ten-year Airbus A330 is around 200 thousand dollars.
Successor to bankrupt Alitalia under attack by low-cost airlines
The successor to bankrupt Italian flag-carrier Alitalia faces an uphill battle to establish itself after low-cost rivals took advantage of the pandemic and a long restructuring process to grab chunks of its home market. “Italia Trasporto Aereo SpA”, known as ITA, plans to start services on October 15, after months of talks with European Commission officials over terms of the overhaul and aid previously granted to Alitalia finally produced a deal on Thursday. With those issues resolved, the company is set to kick off with mainly European flights and a handful of long-haul routes from Rome and Milan to New York, Boston, Tokyo and Miami. The goal is to build a leaner carrier that can focus mainly on international markets, without getting bogged down by the costs and commitments that made Alitalia a ward of the government since 2017. But ITA, at half the size of the old Alitalia, may be too small to compete against established airlines with only seven wide-body planes and is lacking a partner after years of talks with major carriers including Deutsche Lufthansa AG and Delta Air Lines Inc. Long-haul travel also remains hobbled by widespread border curbs, and the corporate demand that’s usually a key driver for inter-continental journeys is expected to take years to fully revive after the 16-month global pandemic. Ryanair, Wizz: In the short-haul markets that are rushing back, lower-cost rivals led by Ryanair Holdings Plc and fast-expanding Wizz Air Holdings Plc have moved into Italy during the pandemic while the government haggled with Brussels over what Alitalia assets could be handed over to state-owned ITA. “Uncertainties are very high in long-haul markets,” said Andrea Giuricin, a transportation economist at the University of Milano-Bicocca. And ITA “will hardly have costs as low as Wizz or Ryanair.” Ryanair, Europe’s largest discount airline, now controls 33% of the Italian market, up from 22% in mid-2019, based on data from flight-tracking firm OAG. The Irish carrier has restored almost all of its pre-pandemic capacity in Italy, while Alitalia – a close No 2 in summer 2019 – has fallen by more than half. Bigger planes: Ryanair’s new Boeing Co 737 Max jets will carry even more people and sip less fuel, bringing expenses down further, chief executive officer Micheal O’Leary said on Thursday in an interview in Rome. “We know that all competitors have higher costs than we do,” he said. “We scare them; they don’t scare us.” Wizz, based in Hungary and listed in London, has tripled its presence in Italy after adding six bases since the start of last year and plans to double its fleet in the country. EasyJet may represent a further threat once travel curbs in its home UK market are eased, while ITA will be launching just as tourism enters the typically slow winter season when even the healthiest European airlines generally lose money. Reincarnation: State-owned Alitalia was the dominant local presence in Italy for decades. A bloated workforce, an ageing fleet and an inefficient operating model saddled it with high costs – but allowing it to fail was a political nonstarter. Successive governments ploughed more than €5bn ($5.9bn) into the firm after former shareholder Etihad Airways of Abu Dhabi cut ties in 2017. The EU, while allowing further funding during the pandemic, has demanded arms-length terms for the transfer of assets like the Alitalia name to ITA in order to avoid violating state-aid rules. Under terms of the deal with the EU, there’ll also be competitive tenders for non-airline activities, with ITA required to partner with other companies interested in bidding for ground handling and maintenance services. ITA, owned by the Italian Finance Ministry, will start out debt-free but will be half the size of Alitalia, with just 52 aircraft – increasing to 78 in 2022 – and about 2,800 staff. It will receive €700mn from the Treasury to begin flights, according to a statement issued after the EU agreement was reached. Hiring plans: The new airline plans to hire up to 5,700 people, but Alitalia workers will lose salary levels and seniority, likely exacerbating labour strains that have dogged the company throughout the bankruptcy process. Chief executive officer Fabio Lazzerini has said an alliance with an international airline could be both commercial and industrial, meaning the partner could buy a stake. Yet Lufthansa and other potential suitors that have accepted state aid from their own governments are either barred from investing or risk a political backlash if they make such a move before paying back their rescue funding. A partnership is necessary for ITA but it won’t be enough without an investment, said Giuricin, the transportation economist. “It is more important to be part of one of the large European groups,” he said. “A standalone strategy is not an option anymore.”
Farewell Alitalia: ITA cleared for take-off
The new airline being created to replace the long financially ailing Alitalia will take off on Oct. 15 with its first flights, the Italian Economy Ministry announced Thursday. In a statement, the ministry said the new company, ITA, will be fully operating on that date, following the positive outcome of discussions with the European Union's executive commission. Alitalia’s last flights apparently will operate on Oct. 14. EU competition officials expressed concerns for years that the Italian government’s financial support for Alitalia violated the bloc's rules. "The discussion with the European Commission has permitted to arrive at a constructive and balanced solution that guarantees the necessary discontinuity in respect to European rules,'' the ministry said. ITA stands for Italia Trasporto Aereo or Italy Air Transport. But precisely what name or logo will be on the new airline’s planes is still unclear. There will be public bidding for the brand “Alitalia,” which ITA said it will compete for. The deal to create the new airline calls for slashing the number of slots, especially at Rome's main, Leonardo da Vinci airport. Milan's Linate Airport, popular with business travellers since it is close to Italy's financial and fashion industry capital, will also see some slots reduced. Among its routes, ITA said it plans to operate flights to New York from Milan and Rome, and to Tokyo Boston and Miami from Rome. Destinations from Rome and Milan’s Linate airport will include Paris, London, Amsterdam, Brussels, Frankfurt, and Geneva. Italian news agency LaPresse, quoting a statement from ITA, reported that ITA's board on Thursday approved an industrial plan for the new company starting this year and running through 2025. ITA, according to its statement, plans to operate a fleet of seven wide-body and 45 narrow-body aircraft at the start and to add 26 more planes later this year. By the end of 2025, ITA aims for a fleet of as many as 105 aircraft. Alitalia currently has some 10,000 employees. The new company may take on some of the workers, who in recent years staged strikes to demand more attention to the airline’s future. In recent months, they also faced uncertainty over getting paid on time. ITA said it will start operating this year with some 2,750 to 2,950 employees in its aviation sector, raising the number to 5,550-5,700 by the end of 2025. “All the persons will be hired with a new work contract that assures greater competitiveness and flexibility compared to other operators in the sector,” ITA noted.
Alitalia newco to launch ops early 3Q21, plans asset tenders
ITA – Italia Trasporto Aereo, the newco Alitalia, must commence flight operations this summer, by June or July, Italy’s minister of economic development, Giancarlo Giorgetti, told the parliamentary transport committee on March 17, the newspaper La Repubblica reported. The industrial plan for the airline’s launch “must be based on discontinuity, economic sustainability, and market vision. This means that to fly, ITA cannot be too heavy,” said the minister, who assumed office as part of Prime Minister Mario Draghi’s new cabinet on February 13. All operations must be accelerated if the government’s target for ITA to take off by this deadline is to be met, he said at the meeting, which came one day after Europe’s competition commissioner Margrethe Vestager approved Alitalia to transition into a slimmer company without a tender for the transfer of the aviation branch to the newco. “The time factor is decisive. I also stressed this aspect to Commissioner Vestager. It is in our interests for ITA to depart as soon as possible. We are already late - ITA was supposed to be operational as early as April,” Giorgetti warned. However, against the wishes of Alitalia’s administrators, the European Commission has insisted on open tenders for some of Alitalia’s assets instead of simply having them transferred directly to the new carrier. “I think we will go towards open tenders for handling and maintenance. We can imagine some simplified formulas - and for this reason the number of staff at the Alitalia extraordinary administration has been expanded - but it is not at all an easy task,” Giorgetti explained. Because Brussels wants a clean break with the past, he added, the ITA-board-approved industrial plan is now undergoing a “deep revision”. Rome has earmarked EUR3 billion euros (USD3.56 billion) to launch ITA to replace Alitalia, the flag carrier that state-appointed administrators have run since it was declared bankrupt in 2017. Many of the details about the new airline have yet to be released, although most recently the newspaper Corriere della Sera reported on March 2 that the industrial plan now foresees 45 to 47 aircraft, namely six long-haul B777-200(ER)s and about forty A319-100s and A320-200s. The Embraer aircraft operated by regional unit Alitalia CityLiner would be eliminated. There would be no more than 4,500 to 4,900 employees in total, less than half of the current workforce of almost 11,000. The project “will have repercussions of a social nature that we are evaluating with the minister of labour,” Giorgetti admitted to the parliamentary committee, adding that “tools are needed for those who cannot be welcomed onboard the newco.”
Alitalia abandons all flights from and to Milan
Alitalia discontinued all flights from Malpensa, the international airport in Milan. Alitalia will no longer fly from Milan due to the collapse in demand linked to the global COVID-19 health emergency. This will be implemented as of October. Alitalia’s most popular route from Milan to Rome was previously reduced to two a day and passengers were mostly transit guests connecting from Tokyo or New York. It is the first time since 1948 that the Italian flag carrier will not operate from Milan Malpensa Airport. A history spanning seventy years, which has also experienced moments of great expansion, such as when at the end of the 90s the airport was imagined as an intercontinental hub. The new Malpensa 2000 terminal was chosen as an operational base by the former Italian national airline. Canceled is Milan – New York , Rome-Boston. There are no more flights from Italy on Alitalia to Argentine (Rome-Buenos Aires) and from Rome to Tokyu. Also flights to Tel Aviv and Alger are canceled. Alitalia is still operating flights to Paris, Brussels, London, and Amsterdam from Rome Fiumicino and Milan Linate airport. Frankfurt, Munich, Geneva, Zurich, Nice, Marseille, Madrid, Malaga, Barcelone, Athens and Tirana will still connect to Rome. Currently, the demand for international flights from an to Italy is down 40% from pre-COVID-19 levels. The discontinuation of almost all flights during the months of the lockdown has severely impacted the industry, leaving airlines and airports in a state of extreme fragility. Aid was granted to the main European and US airlines, from Lufthansa to Air France, from IAG (British-Iberia) to United Airlines and American Airlines. Alitalia also received its support for the pandemic: A green light from Brussels arrived just a few days ago. But despite this, the massive cuts in staff, implemented by the main airlines, and the drastic reduction of operations continue. COVID-19 arrived when Alitalia was already in a crisis and relaunched a new version of Alitalia prior to the pandemic. Financial aid can flow to Alitalia under the condition, that the new and old Alitalia is not connected Alitalia President Francesco Caio and the CEO Fabio Lazzerini are back to work, to define a recovery plan in an air transport situation that is nothing short of desperate and dramatic. The company’s operations currently rely on three quarters on the domestic market. The airline mus take advantage and coordinate its affiliation with the Skyteam alliance to rebuild its international network. - eTurboNews | Trends | Travel News
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