Enthilza

I don't know if it's a coincidence or a deliberate aggressive move by AF, but I just booked 2 Y tickets for CDG-FCO around the 10/07 and AF prices were 40% lower than AZ ones (Light fare for both airlines). If AZ can't even capitalize on the summer holidays to generate some revenues, AZ may not, despite the bridge loan from the Italian government, see September or October.

AlicorporateUK

The fact that AZ is/was selling tickets at higher prices compared to AF/other competitors on a given route may not necessarily be a negative factor (for the airline, whereas it certainly is for the end-consumer, who none-the-less has a choice) The algorithm behind the pricing of flight tickets is perhaps a tad more complicated than what we generally assume and thus making it virtually impossible to draw conclusions such as the one I've just quoted (with all the issues they have, saying that they may go bust in September because they are selling expensive fares to FCO or CDG is possibly a slightly groundless statement ). That aside, I could mention a few circumstances concerning the LIN-LCY route where AZ was way more expensive than BA and, still, flights were packed to the brim (a couple of weeks ago, on a Monday, I boarded the BA flight to LCY leaving 25 minutes earlier than the 220's AZ service and we were not even 30 passengers on-board whereas the Alitalia flight, where my colleagues were sat, was nearly full and I can assure you that prices were all but cheap!)

G

brunos

Indeed.
What counts is not the number of seat sold but their yield. If AZ has high load and can sell seats at a higher price then they are right.

AlicorporateUK

As I've just reported on the Alitalia sub-forum, rumours suggest that Delta has made an offer for the struggling Italian carrier. The Italian newspaper Il Messaggero did mention a source close to the dossier last week whereas ANSA also reported the rumour earlier on today. Delta did not mention any offer but made a brief statement (to Bloomberg) saying that they are "closely monitoring".

G

PROACTIVE

For info: yesterday was the deadline to "show interest in submitting an offer" and request access to the data room. No offer has been made so far.
But yes Delta is one of the 30 companies requesting access to the Data room.

AlicorporateUK

Thanks ^

G

irishguy28

Delta can't buy more than 49% of the shares; Etihad would presumably be delighted to offload their holding to Delta, and I can't see Delta wanting to be have Etihad as a major shareholder in the airline.

Delta may think that their de-facto control of Virgin Atlantic with a 49% shareholding can be replicated at Alitalia - but only if they ignore Etihad's experience.

I image that Delta are only being sticky beaks and trying to get a glimpse of the books, like the other 29 "interested" parties.

AlicorporateUK

True. Also and regardless of what they are trying to get at this stage, no one would be willing to take-over the massive debt. Alitalia had 2 big chances (even before Etihad) to play a significant part in the industry and namely -

1. The failed merger with KLM (FYI and a useful link for those who are too young to remember: http://ec.europa.eu/competition/merg...ns/jv19_en.pdf);

2. The proposal from the Air France-KLM group back in 2008, under which they would have cleared the debt and with only a tiny reduction in terms of workforce.

Sadly, we all know the outcomes for each of the above.

G

NickB

And the latter and to a lesser extent the former) due to misplaced nationalism by politicians and a failure to said politiicians and Unions to acknowledge that the world had changed since the 1970s. Not so much Caporettan capitulation as Pyrrhic victory. One day, history books will be full of the damage Berlusconi will have caused Italy, both economically and politically but I guess that discussion is for OMNI rather than this board.

AlicorporateUK

I entirely agree with you apart from the fact that the damage caused by the various cabinets led by SB is painfully visible now and without the supporting argument of history books.

G

Goldorak

AZ has filed for bankruptcy in the US
https://www.flightglobal.com/news/ar...ection-438193/

brunos

This is a natural extension of its Italian filing for bankruptcy. It is even strange that they had not done it before. But is not good news either.

irishguy28

I think it response to, as the article states, JFK's notice of eviction as of yesterday:

However, as the current order can only last until 26 June at the latest, one wonders if the issue will arise again, or if they can/must keep applying for this bankruptcy protection. Things must be really bad, though, if they cannot pay JFK airport, whose routes account for 15% of all AZ revenues according to that article.

brunos

This is a temporary restraining order until the filing is heard on June 26 and a decision is reached by the bankruptcy judge. If granted, the protection will last some time.
I am no expert of US law, but I guess that the order only applies to past creditors. AZ will still have to pay for ongoing operations.

San Gottardo

Took ORY-LIN this morning for the first time since December. Not a nice experience anymore, despite the proximity of both ORY and LIN to the respective city centres.

• No OLCI possible, despite ticket being booked directly with Alitalia
• Flight now leaves from ORY South with its distinct beach and VFR feeling about it. Everything just takes much longer as people aren't in the same mindset as when whizzing through SkyPriority at CDG
• SkyPriority line at CKI is sign-posted, but noone respects it (neither passengers nor staff)
• Check-in done by a clueless subcontractor firm ("Please go immediately to the gate, there are many people at passport control." - "This flight does not leave from the Schengen gates" - in a lecturing tone: "No Sir, this flight goes to Italy. You should know, you are traveling on it")
• No possibility to obtain boarding pass for return flight on the same day
• No more Access No. 1, despite flying in J and Skypriority
• No lounge
• Plane now downgauged to an ERJ-170, which means no more free neighbouring seat in J, unlike on the A319 which used to operate on the route
• Plane parked on tarmac, accessible through a long outside corridor. The gate staff hoarded all the people in that outside corridor for more than 20 minutes - great fun with temperatures above 30 degrees and the noisy and dusty construction site of the ORY connector just a few centimeters behind the parting

Clearly the service and comfort level was better during the days of the partnership and ops from Orly West (lounge, fast track at security) with a larger plane aceessible by jetway. Return should be better as it is leaving from one of AZ's hubs, but still