Unions voted down recapitalisation plan [Merged future of Alitalia thread]
Apr 25, 2017, 1:04 pm
#31
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G
Apr 25, 2017, 1:30 pm
#33
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Pretty hard to establish. Last time, the controlled administration lasted from August 2008 up to mid-January 2009, when a number of investors (including Intesa bank) pumped some money and bought the good side of the business (essentially, the special commissioner had agreed to split the airline into good and bad company, with the latter going bust).
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G
Apr 25, 2017, 1:32 pm
#34
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Pretty hard to establish. Last time, the controlled administration lasted from August 2008 up to mid-January 2009, when a number of investors (including Intesa bank) pumped some money and bought the good side of the business (essentially, the special commissioner had agreed to split the airline into good and bad company, with the latter going bust).
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G
Apr 25, 2017, 1:37 pm
#35
Join Date: Sep 2015
Programs: LH SEN; BA Gold
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Currently I don't see any positive element that could turn this around. A good administrator might keep AZ afloat as long as possible, but that isn't going to change the fact that they'll need to make a deal with the existing shareholders or get fresh financial means. Either scenario seems unlikely to me.
Shame for such a traditional brand, but at some point it might be better to just let the brand die in dignity than to keep her going until the next time the bills can't be paid.
Apr 25, 2017, 1:57 pm
#36
Join Date: Oct 2009
Location: SJJ/AMS
Posts: 4,647
Agree, but a public crisis like this (Alitalia is currently all over the news) is going to dramatically reduce take in of liquidities: I guess that the number of bookings is already dropping.
Currently I don't see any positive element that could turn this around. A good administrator might keep AZ afloat as long as possible, but that isn't going to change the fact that they'll need to make a deal with the existing shareholders or get fresh financial means. Either scenario seems unlikely to me.
Shame for such a traditional brand, but at some point it might be better to just let the brand die in dignity than to keep her going until the next time the bills can't be paid.
Currently I don't see any positive element that could turn this around. A good administrator might keep AZ afloat as long as possible, but that isn't going to change the fact that they'll need to make a deal with the existing shareholders or get fresh financial means. Either scenario seems unlikely to me.
Shame for such a traditional brand, but at some point it might be better to just let the brand die in dignity than to keep her going until the next time the bills can't be paid.
G
Apr 25, 2017, 2:00 pm
#37
Join Date: Oct 2009
Location: SJJ/AMS
Posts: 4,647
I have SCL coming up plus LAX on May 11th - but I'm not going to lose my sleep as I'm fairly sure things will still be fairly regular at that time. Certainly, though, I would not be particularly willing to make any further bookings.
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Apr 25, 2017, 2:04 pm
#38
Join Date: Dec 2011
Location: Rome
Programs: Alitalia MilleMiglia
Posts: 118
Let's not forget one thing, Etihad went into the deal with Alitalia, one assumes, with their eyes wide open and would have no doubt factored in this situation as a possibility. They certainly have the capital for a temporary solution to this crisis I would've thought? The key to resolving this issue could well lie in Abu Dhabi, rather than Rome. Let's hope so. EY do not strike me as a company that will cut and run after all the investment they have put into AZ.
Apr 25, 2017, 2:04 pm
#39
Join Date: Apr 2017
Location: Nanaimo Canada
Posts: 19
Been following this very closely, as my husband and I are flying from BOS-FCO and back May 5th and May 14th. Really coming down to the wire for a decision.I know that our CC company will reimburse for the flight, but am also curious about rebooking on a partner airline (such as AirFrance or Delta).
Apr 25, 2017, 2:22 pm
#40
Join Date: Oct 2009
Location: SJJ/AMS
Posts: 4,647
Let's not start again with the maintenance like a number of time-wasters' pseudo engineers on the error fare's thread who were suggesting exactly the same thing on the ground that AZ customer service is useless and so is the maintenance, without any proof and writing just for the sake of it while playing computer games. One of the few good things left is indeed the maintenance, which is split between Naples, Israel and Lufthansa Technik in Germany - all outstanding sites and with no sign whatsoever suggesting otherwise, together with the excellent safety record held by the airline. Let's keep such fluff out of FT please.
With thanks
G
With thanks
G
Last edited by AlicorporateUK; Apr 25, 2017 at 2:28 pm
Apr 25, 2017, 2:42 pm
#41
Join Date: Sep 2015
Programs: LH SEN; BA Gold
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And given their misfortune with their other European investment (AB), I suspect that they are much more reluctant these days to "just throw money at it".
Apr 25, 2017, 2:53 pm
#42
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Apr 25, 2017, 3:08 pm
#43
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Apr 25, 2017, 4:18 pm
#45
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http://finance.yahoo.com/news/alital...123353704.html
The board is looking to call for a special administrator on May 2nd meeting.
"The administrator would assess whether Alitalia can be overhauled or should be wound up, before preparing industrial and financial plans for a rapid revamp, either as a standalone company or through a partial or total sale.
If all else fails, it could trigger liquidation."
"The airline has sufficient funds to keep flying for "a matter of weeks, two to three weeks," partly by calling in unpaid invoices, the person close to the company said."
The board is looking to call for a special administrator on May 2nd meeting.
"The administrator would assess whether Alitalia can be overhauled or should be wound up, before preparing industrial and financial plans for a rapid revamp, either as a standalone company or through a partial or total sale.
If all else fails, it could trigger liquidation."
"The airline has sufficient funds to keep flying for "a matter of weeks, two to three weeks," partly by calling in unpaid invoices, the person close to the company said."