Alitalia MilleMiglia - Alitalia needs desperately a new European partner and Lufthansa...NO!

Lufthansa has "presently no intention" to partner with Alitalia in the fast consolidating global airline industry, a Lufthansa spokesman said. An Italian press report had prompted speculation in the market that the German carrier was looking for a new partner while its rivals KLM and BA consider a merger.

In a morning note, Merck, Finck & Co. analyst Pia-Christina Schulze aid, "Alitalia is highly vulnerable in the European contest due to its stand-alone position in an environment characterised by intense alliance and merger intentions. After the break up of its negotiations with KLM, Alitalia needs desperately a new European partner and Lufthansa might use this situation to bring Alitalia into the Star Alliance .... The axis Frankfurt, Munich, Vienna, Milan and Rome seems to be a very natural one, from the geographical point of view."

"Thus, AF, which is also looking for further alliance partners in Europe, might not have the same good chances as Lufthansa in competing for Alitalia," she said.

Part of the problem I believe is that Alitalia is still largely owned by the Italian government, one of the main reasons KLM broke off the deal. Italy was supposed to take Alitalia public and shed it's stock by the end of April.

The same problem exist in the telephony world in Europe, KPN Holland and Telephonica (Spain) were talking, but the Dutch government still own a chunk of KPN (formerly PTT Netherlands) so the merger broke off (although it may be back on if Holland agrees to sell most of its' interest in KPN.) To enter into a merger where the government owns a chunk of the airline or telephone company seems to be a stumbling block.

So, perhaps partnering may happen for Alitalia, but I doubt a merger for now.

Am I correct in this theory, looking for your comments (and if they are from Merry [Nick], please be polite this time. http://www.flyertalk.com/forum/smile.gif )

Jonathan

Hmmm

It's an interesting idea.

How about an alliance between Lufthansa, Austrian Airways, Alitalia and either JAL or ANA?

Once established it could proceed to acquire new partners (voluntarily or otherwise) starting with LOT (Poland), CZA (Czech Republic), KLM (Netherlands) and then proceed onto larger partners such as Air France.

A takeover of Aeroflot would be out of the question however.

http://www.flyertalk.com/forum/smile.gif

cheers Peter

Italian state airline Alitalia is again considering an alliance with Air France following the failure of its alliance with KLM of the Netherlands, the Milan financial newspaper MF reported.
http://news.airwise.com/stories/2000/06/961071748.html

Stung by a breakoff of talks with KLM, Alitalia is looking for commercial partnerships rather than a merger, the chief executive of Italy's national airline said Wednesday. Alitalia CEO Domenico Cempella told parliament's transport commission that Alitalia is seeking a European or American partner or both.

KLM broke merger talks with Alitalia earlier this year and the Dutch carrier is now earnestly trying to complete an alliance with British Airways.

Rumored allies of Alitalia are AF and SwissAir. Both have long-range capability it needs to complement Alitalia's operations, said Stefano Gamberini, a transport analyst for Euromobiliare SIM. Gamberini said Alitalia's results are expected to suffer again this year from high international fuel costs and a failure of Milan's Malpensa airport to become an intercontinental hub as intended.

Cempella told parliament that he expects Alitalia to break even in 2000- due to onetime gains.

"break even in 2000"... that brought a smile. let's guess what 2001 will bring if the bait doesn't bag a buyer in 2000.

JRF, I, too, think there are analogies between airlines and telecom in Europe, esp. where entities controlled by a protective state enter markets of a second, more competitive state. The auction this month of UMTS licenses in Germany, with KPN backing E-Plus for a German license, is straining DE/NL relations. The kiss-off DeTe got from the Italian govt in DeTe's bid for Telecom Italia would be a precedent for anyone trying to buy Alitalia, I think.


E-Plus - bereits mit dem E-Netz vertreten, Rückendeckung durch den niederländischen Telefonkonzern und E-Plus-Mehrheitseigner KPN

[This message has been edited by Eidetic (edited 07-05-2000).]

Alitalia today confirmed that it is considering an alliance with either Swissair of the SAir Group or Air France.
http://news.airwise.com/stories/2000/09/969293544.html

Some have also suggested a rapprochement between KLM and Alitalia -- a pairing analysts called almost ideal because of the two carriers' complementary operations -- but mending that acrimonious separation could prove difficult. KLM ended what promised to be a deep joint venture because of political issues in Italy that raised questions about Alitalia's future.
http://public.wsj.com/news/personalEmail/SB96955536436273434-SB969596563821432026.html

SkyTeam is still in negotiations with Alitalia, the Daily learned, encouraging the airline to join the group next year.
http://www.aviationnow.com/TwoShare/getPage?sid=-6811372638690185474

Air France confirmed it is in talks with Alitalia over the Italian airline's entry into the SkyTeam alliance.
http://www.flyertalk.com/forum/Forum114/HTML/000017.html

According to the Financial Times, SAirGroup, parent of Swissair, has halted negotiations about a possible alliance with Alitalia, Italy's flagship carrier, following mounting losses at the Swiss airline group's Belgian and French airline operations.

Air France has also reportedly ended talks with Alitalia today

AF said it is now ready to launch alliance talks with Alitalia as soon as a new chief executive was chosen to replace Domenico Cempella, who stepped down on Friday.


http://biz.yahoo.com/rf/010207/l07116492.html

The new CEO's main job will be to secure an international alliance for Italy's troubled flagship carrier. KLM Royal Dutch Airlines has again been touted as a possible partner, along with Air France .

Italy's Treasury, which supported the appointment of Mr. Mengozzi in its desire for an authoritative outsider, has confirmed it has had contact with KLM and Air France, as well as with Swiss Air.
http://public.wsj.com/sn/y/SB98172835816699576.html

I hope the rapprochement with KLM contines to the old alliance

[This message has been edited by Cris L (edited 02-10-2001).]

http://www.flyertalk.com/forum/eek.gif

``KLM has indicated very strictly that under the current circumstances there is no way we would restart negotiating or talking with Alitalia,''
http://www.flyertalk.com/forum/Forum28/HTML/000041.html

My actual response to this was unprintable !

This combination of AZ+KL really worked for me !


------------------
Continental Airlines (http://groups.yahoo.com/group/ContinentalAirlines)
American Airlines (http://groups.yahoo.com/group/AmericanAirlines)
KLM Royal Dutch Airlines
(http://groups.yahoo.com/group/KLMAirlines)
NorthwestAirlines (http://groups.yahoo.com/group/NorthwestAirlines)

Now I don't know what really KLM talks about AZ. They repetedly change their opinions on talking to AZ so many times in such a short time. In the morning, they said no then in the afternoon yes. So what is the real truth and when do we all expect to hear either yay or nay?

Very confusing.

Air France has held talks with Alitalia and is looking to seal a commercial accord with the Italian flag carrier in the near-term, an Air France director said on Wednesday. ``We've worked a lot with Alitalia, and the work is almost complete,'' Patrick Alexandre, director of international business, told reporters on the sidelines of a conference.
http://biz.yahoo.com/rf/010228/l28270877.html

Alitalia, which is also pursuing intermittent alliance talks with erstwhile merger partner KLM Royal Dutch Airlines and with Swissair parent SAirGroup , is now focusing on the French connection to give it global reach, these people said.
http://public.wsj.com/sn/y/SB984347810534495237.html

Air France confirms Alitalia meeting this week
http://www.flyertalk.com/forum/Forum114/HTML/000017.html

Air France, Alitalia planning joint marketing strategies

AF and Alitalia have signed a Memorandum of Understanding (MoU) in Rome. According to the terms of the MoU, Air France and Alitalia have agreed to a round of exclusive talks to develop enhanced marketing activities in view of Alitalia's possible membership of SkyTeam.

"The French and Italian markets, the third and fourth largest in Europe, have a great deal in common, with a fairly even balance between business and leisure traffic," said Air France chairman Jean-Cyril Spinetta.

"Italy is a strategic market for Air France, which serves 12 major Italian destinations with over 50 flights a day.

http://www.schednet.com/schedule/news/N010716.HTM#HL5