Contributor - Europe

Cathy Buyck

There are just two days to go before a consortium led by Italy’s state-owned railway company Ferrovie dello Stato (FS) is expected to submit a binding business plan mapping out the rescue of Alitalia and its participants.&nbsp; Lufthansa CEO Carsten Spohr contends&nbsp;the German group is ready to assist Alitalia with its turnaround, however, Lufthansa will not invest in the struggling Italian carrier before it is fully restructured. “We have not changed our position. In the current Alitalia, we will not invest. But we would be interested in being the commercial partner to turn the company into a successful airline.&nbsp;Once it is a successful airline, we also see ourselves investing,” Spohr said, speaking at the IATA Wings of Change Europe conference in Berlin on Tuesday.
“It will be very challenging for Alitalia to be successful on their own. You need partners, nowadays, to be successful,” Spohr asserted. “Swiss needed a partner, Austrian Airlines needed a partner, Brussels Airlines needed a partner, even Lufthansa needs a partner,” he noted, referring to the different network airlines belonging to the Lufthansa group. “What we are telling the Italians is that, much more important than who is investing the last 10 percent [in the rescue consortium], is the question; are you on your own in Europe, or do you have a strong partner, a partner with a strong frequent flier program, with support and a sales team in China, Canada, Latin America?&nbsp;We have all that. We can offer that. Others are willing to offer a 10 percent investment. It is up to the Italians to decide what is the most important,” said Spohr.
The economic development ministry has set November 21 as a deadline, the seventh, for FS to submit a long-term business plan and new shareholding structure for Alitalia Newco. Alitalia and its regional subsidiary Alitalia CityLiner were declared insolvent in May 2017, and the airlines were placed under extraordinary administration.
Last month, <a href="http://www.ainonline.com/aviation-news/air-transport/2019-10-16/alitalias-rescue-heads-new-delay">Italian infrastructure group Atlantia and FS said they remained committed</a> to&nbsp;rescuing&nbsp;Alitalia, though they attached a string of conditions to their potential participation including the involvement of an airline in the ownership and management of the new flag carrier. Delta Air Lines would be willing to invest 10 percent in the new Alitalia, aiming to keep the airline in the SkyTeam alliance and maintain a stronghold in the U.S.-Italian market. Bringing Lufthansa into the consortium would raise questions about&nbsp;Alitalia’s membership in&nbsp;SkyTeam, as Lufthansa is part of Star Alliance.
Meanwhile, Air France KLM CEO Ben Smith reiterated the Paris-based group is not interested in participating in the relaunch of Alitalia, pointing out that the Franco-Dutch company had twice made an investment in Italy’s perpetually loss-generating national airline. Italy is a large market, he told IATA Wings of Change Europe delegates, but Alitalia is a “challenging” airline. The best way forward for Air France and KLM&nbsp;to continue working with Alitalia is through SkyTeam, he said.

News about commercial airlines, including regulations, aircraft orders, safety, acquisitions, and mergers.

Lufthansa Prioritizes Commercial Partnership with Alitalia over Shareholding

Italy’s government set November 21 as new deadline to receive a binding bid for its troubled flag carrier.  

2024 Corporate Aviation Leadership Summit

Charles Alcock

News and developments about airplanes, helicopters and unmanned air vehicles used in all varieties of operations, including airlines, military, business, commercial, general aviation and private.

News about environmental issues relating to aircraft operations, including noise issues, emissisions, and regulations. See Fuel for biofuel.

News and issues relating to international air transport and cargo carriers, national airlines and regional airlines, including aircraft, engines, personnel, acquisitions, accidents, safety, security and training.

Agreement between start-ups could lead to orders for up to 15 aircraft

Skyhop Plans Island Routes With Noemi's Electric Seaplane

Howard Hardee

Airline plans to gradually replace its Embraer E-Jet fleet

A220’s Performance Drives BermudAir’s Fleet Growth

Partners say eVTOLs could accelerate response times in crowded Indian cities

Air India Backs SkyDrive Emergency Medical eVTOL Plans

News and issues relating to the aerospace industry that are related to the science, engineering and business of flight in space involving civil, industrial and military applications, and similar topics related to flight in the atmosphere of the Earth that are not covered more directly by other AINonline subject channels. In other words, both astronautical and aeronautical subjects, except for those aeronautical topics that are specifically covered elsewhere on this website.

Rival Boeing arguably claimed bragging rights at the Farnborough International show

Airbus Balances Shareholder Returns and New Aircraft

New developments at airports including regulations and noise issues; legal disputes; openings, acquisitions and mergers.

Connections to London Heathrow and Manchester airports will start first

Virgin Firms Up eVTOL Air Taxi Alliance with Joby

News and developments about everything that goes into the cabin of an aircraft, from floor coverings to headliners, with a special emphasis on in-flight entertainment, communications and other electronics for passengers. If it is in the cabin of an aircraft, it’s covered here.

More In Airlines

Skyhop Plans Island Routes With Noemi's Electric Seaplane

Agreement between start-ups could lead to orders for up to 15 aircraft

A220’s Performance Drives BermudAir’s Fleet Growth

Airline plans to gradually replace its Embraer E-Jet fleet

Air India Backs SkyDrive Emergency Medical eVTOL Plans

Partners say eVTOLs could accelerate response times in crowded Indian cities

Airbus Balances Shareholder Returns and New Aircraft

Rival Boeing arguably claimed bragging rights at the Farnborough International show

Virgin Firms Up eVTOL Air Taxi Alliance with Joby

Connections to London Heathrow and Manchester airports will start first

ATR Chases New Regional Markets for Twin Turboprops

Iran war and wider geopolitical pressure stall buying decisions

Embraer Racks Up E-Jet Orders at Farnborough

30 firm orders led by Abra

Gulf Air May Buy JetZero’s Blended-wing-body Z4

Japan Airlines also expresses interest at Farnborough Airshow

AIN Products

SUBSCRIPTIONS

RESOURCES

ABOUT AIN