Future of Alitalia - 2017 edition
Mar 8, 2017, 2:16 pm
#32
Join Date: Oct 2009
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Rumours indicate that banks are ready to pump more money in, but they are also pushing, at the very same time, to get rid of current CEO & friends, demanding for a new senior team at the very top. It also seems that a further board meeting was called for tomorrow. That said, you should be safe - I really doubt they will collapse entirely and, even if they go through some sort of insolvency procedures like in the past (2007 or something), it will be (more-or-less) business as usual.
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Mar 27, 2017, 4:20 am
#34
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Bloomberg: Italy Said to Mull Alitalia Financing to Avoid Cash Crunch
Originally Posted by Bloomberg
Italy is considering emergency financing for Alitalia SpA as the carrier risks running out of cash in a few weeks because investors and creditors are reluctant to fund a new rescue plan without a labor agreement on job cuts, according to people familiar with the matter.
The Finance Ministry is pressing state-owned lender Cassa Depositi e Prestiti to provide 200 million euros ($216 million) of financing backed by a state guarantee as part of 400 million euros of so-called contingency equity, said the people, who asked not be be identified because the discussions are private.
Etihad Airways, which owns 49 percent of Alitalia, is ready to invest the remaining 200 million euros, the people said. The money would be used to keep the airline afloat if the five-year restructuring plan announced March 15 fails to get backing from remaining investors or the company fails to reach its financial targets.
Finance Minister Pier Carlo Padoan, in an effort to meet European Union rules on state aid, may use a 2003 Italian law that allows state guarantees to be used for Cassa Depositi financing, the people said. The Italian government and CDP are still evaluating the mechanism and no final decision has been taken, they said.
The Finance Ministry is pressing state-owned lender Cassa Depositi e Prestiti to provide 200 million euros ($216 million) of financing backed by a state guarantee as part of 400 million euros of so-called contingency equity, said the people, who asked not be be identified because the discussions are private.
Etihad Airways, which owns 49 percent of Alitalia, is ready to invest the remaining 200 million euros, the people said. The money would be used to keep the airline afloat if the five-year restructuring plan announced March 15 fails to get backing from remaining investors or the company fails to reach its financial targets.
Finance Minister Pier Carlo Padoan, in an effort to meet European Union rules on state aid, may use a 2003 Italian law that allows state guarantees to be used for Cassa Depositi financing, the people said. The Italian government and CDP are still evaluating the mechanism and no final decision has been taken, they said.
Mar 30, 2017, 3:36 am
#35
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Apr 4, 2017, 2:03 am
#37
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Depends what you mean by "safe". In case of an Alitalia failure, ALL routes will immediately cease.
Apr 4, 2017, 2:52 am
#38
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Even in the worst case scenario that talks with unions (scheduled for this very week) concerning the proposed restructure would fail and as such banks will decide not to pump any more funds in, operations would remain largely unaffected exactly like back in 2008, when the airline went through temporary receivership. Clearly, that wouldn't last forever but there would be a good few months when, as I say, planes would still fly, miles still credited and so on until a solution (new ownership or, indeed, arrivederci) is found. Back in 2008 and when the receiver was appointed, apart from a few strikes and operations hiccups (some high frequency services such as FCO-CDG were being rescheduled and merged, sometimes even at the very last minute - I often turned up at the airport for the 5PM flight to CDG only to be told to run to the gate because I had been put on the earlier service), things were running okay (I also remember flying business within Europe and being told "Sir, I'm afraid we've only got tea, coffee & water today"...). All in all and ahead of the elections in 2018, I strongly doubt the government would let the company collapse just like that.
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Apr 4, 2017, 3:37 am
#39
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Even in the worst case scenario that talks with unions (scheduled for this very week) concerning the proposed restructure would fail and as such banks will decide not to pump any more funds in, operations would remain largely unaffected exactly like back in 2008, when the airline went through temporary receivership.
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Apr 4, 2017, 3:59 am
#40
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Apr 4, 2017, 6:22 am
#41
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Originally Posted by The Telegraph
Alitalia rescue deal moves closer to reality
By Alistair Osborne, Business Editor
7:01PM BST 25 Sep 2008
Italian aviation regulator ENAC had threatened to ground Alitalia and take away its take-off and landing slots if the airline's government-appointed administrator, Augusto Fantozzi, failed to present an rescue plan agreed with the unions. Mr Fantozzi had earlier warned that the airline would run out of cash by the end of the month.
Apr 4, 2017, 6:26 am
#42
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Thanks to irishguy28 for his archive digging skills (
) and, just to clarify, Mr Fantozzi was the receiver appointed by the government at the time (the same government that was dealing with AF over their proposal of full take-over).
Edit: I've just seen the edit where a bit is added clarifying Mr Fantozzi's role.
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) and, just to clarify, Mr Fantozzi was the receiver appointed by the government at the time (the same government that was dealing with AF over their proposal of full take-over).Edit: I've just seen the edit where a bit is added clarifying Mr Fantozzi's role.
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Apr 4, 2017, 6:39 am
#43
Join Date: Jul 2010
Location: TLV
Posts: 240
Thanks to irishguy28 for his archive digging skills () and, just to clarify, Mr Fantozzi was the receiver appointed by the government at the time (the same government that was dealing with AF over their proposal of full take-over).
Edit: I've just seen the edit where a bit is added clarifying Mr Fantozzi's role.
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) and, just to clarify, Mr Fantozzi was the receiver appointed by the government at the time (the same government that was dealing with AF over their proposal of full take-over).Edit: I've just seen the edit where a bit is added clarifying Mr Fantozzi's role.
G
Apr 4, 2017, 6:56 am
#45
Join Date: Oct 2009
Location: SJJ/AMS
Posts: 4,647
Notice that Mr Fantozzi's warning is made one month after bankruptcy filing, not before. The initiation of the bankruptcy procedures then seemed to have been motivated by desire (with Berlusconi's involvement) the split of Alitalia LAI into two companies, one containing the "bad" parts and another to be sold to investors.
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Last edited by AlicorporateUK; Apr 4, 2017 at 7:16 am