Unions voted down recapitalisation plan [Merged future of Alitalia thread]
Apr 28, 2017, 1:54 am
#106
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Apr 28, 2017, 5:24 am
#107
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I guess, unless we have an insider or anyone at Deloitte willing to share some numbers with us, that will be pretty difficult to establish. However, according to one of the latest set of figures (Italy's IlSole24Ore), the airline almost reached an average of €2M in daily losses.
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€2M is the daily cash loss when there were still selling tickets on a regular basis. A lot of customers are not aware of AZ crisis, at least not yet. When ticketing dries up, the cash outflow will be much larger.
Apr 28, 2017, 5:35 am
#108
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That's what I fear. Although AZ might have stated somewhere its annual fuel cost and payroll.
€2M is the daily cash loss when there were still selling tickets on a regular basis. A lot of customers are not aware of AZ crisis, at least not yet. When ticketing dries up, the cash outflow will be much larger.
€2M is the daily cash loss when there were still selling tickets on a regular basis. A lot of customers are not aware of AZ crisis, at least not yet. When ticketing dries up, the cash outflow will be much larger.
Apr 28, 2017, 6:56 am
#110
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Possibly, but lowering prices for flights from/to Italy for flights in the next few months would mean even more trouble for AZ as AZ would loose even more customer and would have to compete on even lower air fares. This will harm their cash flow and increase the trouble.
So, if I were a competitor, I would indeed lower prices as this most likely would eliminate AZ sooner than later.
So, if I were a competitor, I would indeed lower prices as this most likely would eliminate AZ sooner than later.
Apr 28, 2017, 8:21 am
#111
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Possibly, but lowering prices for flights from/to Italy for flights in the next few months would mean even more trouble for AZ as AZ would loose even more customer and would have to compete on even lower air fares. This will harm their cash flow and increase the trouble.
So, if I were a competitor, I would indeed lower prices as this most likely would eliminate AZ sooner than later.
So, if I were a competitor, I would indeed lower prices as this most likely would eliminate AZ sooner than later.
Apr 28, 2017, 11:34 am
#112
Join Date: Apr 2017
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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
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With thanks
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Apr 28, 2017, 5:44 pm
#113
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When a company goes bust, it's never a good idea to stick around and to "wait and see". Getting your cash (back) is priority #1 and a reason why we have insolvency laws, so that liquidation and distribution of the potential + is fair between all creditors.
Apr 28, 2017, 9:26 pm
#114
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No delays. AZ will have to prepay fuel if they want to get any at all. Fuel suppliers are not stupid. They have been following the news for sure.
Apr 28, 2017, 11:20 pm
#115
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I've been reading predictions of imminent bankruptcy and demise of AZ pretty regularly over the past dozen years, but somehow they always keep going. It's not just government bailouts, there is something fundamental in the airline that just keeps going... just like Italy keeps going despite something like 70 government failures/reformations since WWII. Perhaps there are parallel worlds- the logical, accounting world, and the emotional/social world, and they don't really impact each other.
Apr 29, 2017, 8:35 am
#116
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Ironically and on an entirely different note, the new 777-300 aircraft (recently delivered) is currently in one of the hangars at Rome-Fiumicino being repainted, with first scheduled (and as we speak strongly improbable) take off in early September (FCO-EZE).
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Apr 29, 2017, 1:21 pm
#117
Join Date: May 2009
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so i know this has been asked, but im panicking. Scheduled to fly out on an award business ticket in june- with the latest news does that look like its going to happen? and if they stop all operations, am i just out my 160k miles for 2 tickets? thanks.
Apr 29, 2017, 1:55 pm
#118
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Apr 29, 2017, 1:59 pm
#119
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The very latest [news] seem to indicate that the aforesaid bridge loan of 400-plus M€ would be granted on Tuesday and as soon as the board will have ratified the controlled administration. Whilst this should pre-empt an imminent halt to operations, it is however still pretty early stage in order to establish the what next scenarios, even though it is safe to say that your miles would likely not make a return to your account should bankruptcy be triggered.
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Apr 29, 2017, 2:11 pm
#120
Join Date: Oct 2009
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thanks very much. I was just reading about the 400-plus, but what essentially does that mean? Is there any idea on how long that will keep operations going?I thought I read alitalia loses 500k a day, which would mean 100 days of operations at 400m? Then again I imagine they are losing more per day now that people would be scared to book. I'm 6 or 7 weeks away from flying.
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