Unions voted down recapitalisation plan [Merged future of Alitalia thread]
Jan 14, 2018, 11:07 am
#526
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Funny as back in 2008 Air France publicly announced their intentions (together with a fairly detailed plan) to acquire Alitalia, but... well, the government (initially) denied... I guess we’ll have to wait and see what happens in the weeks to come and take news, comments, statements and the likes with the usual pinch of salt
G
Berlusconi's strategy for this campaign is to be on TV every day until election day. You can bet a guest admission in a second rate contract lounge that he will chime in the AZ sale, possibly scaring away any potential investor.
Jan 14, 2018, 1:43 pm
#527
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Certainly the foreign (potential) bidders won't be listening to him.
Jan 15, 2018, 1:11 am
#529
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Jan 15, 2018, 1:15 am
#530
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See http://tg.la7.it/sondaggi/il-sondagg...01-2018-123530 (Italian only).
It's likely that they won't be able to form a government alone, but they will be influential.
It would be crazy (especially considering what happened with AF in 2008) for LH/any other bidder to ignore what Berlusconi will be saying.
Jan 15, 2018, 9:05 am
#531
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Talks will most likely have started with the preferred bidder (if any preferred bidder is actually chosen) by the time of the election; if agreement cannot be reached with that bidder , then Alitalia will be liquidated. Any of the interested bidders know that they will also be able to acquire slots and staff - hired on new contracts, the standard contract of the airline in question rather than any renegotiated contract deriving from existing Alitalia contracts - rather easily in such a scenario, so this worst-case outcome may actually be quite acceptable for the bidders.
Jan 15, 2018, 2:48 pm
#532
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Mr. Berlusconi can say what he likes, but he will no longer be in a position to interfere with Alitalia as he was back in 2008 or whenever he corralled a group of Italian businesses into taking control of the airline rather than have it fall into the clutches of AFKL [within a few years, the airline did fall into the clutches of a foreigner, the moment Etihad became its single largest stakeholder]. There has been no mention of any Italian group seeking to bid for Alitalia, and I doubt that Mr. Berlusconi could now arrange for any such group to come forward, no matter what he says.
Talks will most likely have started with the preferred bidder (if any preferred bidder is actually chosen) by the time of the election; if agreement cannot be reached with that bidder , then Alitalia will be liquidated. Any of the interested bidders know that they will also be able to acquire slots and staff - hired on new contracts, the standard contract of the airline in question rather than any renegotiated contract deriving from existing Alitalia contracts - rather easily in such a scenario, so this worst-case outcome may actually be quite acceptable for the bidders.
Talks will most likely have started with the preferred bidder (if any preferred bidder is actually chosen) by the time of the election; if agreement cannot be reached with that bidder , then Alitalia will be liquidated. Any of the interested bidders know that they will also be able to acquire slots and staff - hired on new contracts, the standard contract of the airline in question rather than any renegotiated contract deriving from existing Alitalia contracts - rather easily in such a scenario, so this worst-case outcome may actually be quite acceptable for the bidders.
I'm not saying that Berlusconi will be able to plot the same strategy as in 2008 - There's no Italian group of 'brave captains' this time.
While as for now Berlusconi didn't say anything about Alitalia, I'm pretty sure that if he says anything against, it would definitely halt any ongoing agreement, since the likelihood that his party at least if not his coalition will form a government in March is very likely. For example, at the actual state of things he could simply follow the propaganda of the populist 5 star movement that called for a halt on the rumored LH agreement until the next government is formed (see Il blog delle stelle - Giů le mani da Alitalia ), which is the most likely scenario now.
What kind of agreement can be done in such an unstable political context before the elections? None.
Jan 17, 2018, 6:16 am
#534
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Originally Posted by New York Times
ROME — Italy will take more time to consider the expressions of interest in struggling carrier Alitalia before starting exclusive talks with one of the interested parties, the industry and transport ministers said in a joint statement on Monday.
Rome originally planned to enter exclusive talks with one of the parties by mid-January in the hope to strike a deal before national elections due March 4.
Rome originally planned to enter exclusive talks with one of the parties by mid-January in the hope to strike a deal before national elections due March 4.
Jan 24, 2018, 4:20 am
#535
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This story appears to have first appeared in the FT - paywall - but "open" versions are available on other websites now, too.
Air France-KLM in exploratory talks with Alitalia to join race to acquire ailing Italian carrier
23 Jan 2018
Air France-KLM (AF-KLM) has had discussions with struggling carrier, Alitalia, about its plans to acquire it.
People who had direct knowledge regarding the situation disclosed that government-tapped commissioners of Alitalia recently met with officials from AF-KLM in Paris last week to talk about the latter’s interest in joining the auction to acquire the Italian air company.
Sources say that this could be made possible through a joint bid with British low-cost carrier, easyJet.
Alitalia starts courting Air France-KLM - report
23JAN2018
Air France-KLM Royal Dutch Airlines has engaged Alitalia (AZ, Rome Fiumicino) in early exploratory talks, sources close to the discussions have told the official ANSA news agency.
According to the report, the negotiations kicked off in Paris on Thursday, January 18. The Franco Dutch carrier, which was Alitalia's leading shareholder with a 25% stake back in 2013, was granted access to the bankrupt Italian carrier's data room "so that it may have access to information it did not previously have".
On the basis of the new data, the sources said technical teams from both sides would then meet to discuss various aspects of the talks.
Earlier this month, Air France-KLM was linked to a joint-offer with easyJet (U2, London Luton) for Alitalia, a claim it subsequently denied.
<snip>
Last Thursday, the European Commission said it would look into Rome's decision to extend a EUR600 million bridging loan to Alitalia, along with a more recent EUR300 million top up, following complaints from major rivals that it broke market regulations against state aid.
Brussels is reportedly awaiting clarification from the Italian government so it can begin assessing the case, the sources said.
(ANSA) - Paris, January 19 - Alitalia and Air France representatives had a "very cordial" first meeting over a possible takeover of the troubled Italian airline on Thursday afternoon, French sources told ANSA Friday. In the meeting, sponsored by Italian Ambassador Giandomenico Magliano, it was decided to give Air France access to Alitalia's data room "so that it may have access to information it did not previously have" on the Italian airline.
On the basis of the acquisition of new data, sources said, technical teams from both sides will meet shortly to discuss various aspects of the talks. It was recently reported that Air France had decided to view with Lufthansa for Italy's ailing former national carrier Alitalia - but Air France denied the report.
It seems very likely that AFKL are therefore involved now; and particularly after Lufthansa's recent letter, may be the preferred bidder already, even without having tabled an offer.
Originally Posted by Financial Times
Air France in talks with Alitalia to acquire carrier
Executives of Franco-Dutch group met Italian commissioners to discuss joining auction
James Politi in Rome and David Keohane in Paris
January 21, 2018
Air France-KLM has held talks with Alitalia about entering the race to acquire the ailing Italian flag carrier, a decade after its efforts to purchase its peer were scuppered by political opposition.
According to people familiar with the matter, Alitalia’s government-appointed commissioners met AF-KLM executives in Paris last week to discuss the Franco-Dutch airline’s interest in joining the auction, possibly through a joint bid with easyJet, the British low-cost carrier.
AF-KLM’s arrival on the scene marks a new twist in the long-running saga surrounding the fate of Alitalia, turning control of Italy’s skies into a key battleground in the European airline sector.
<snip>
Alitalia — and the Italian government — had hoped to get the sale wrapped up by the end of last year, but the offers that came in late 2017 were not considered sufficiently strong to merit any kind of exclusive negotiation, let alone a formal deal.
This prompted the commissioners to engage in a new set of talks with potential buyers, including AF-KLM, which was granted access to Alitalia’s data room after last week’s meeting, but also Delta Air Lines, the US airline, which acquired a 10 per cent stake in the French airline last year.
<snip>
Now under government control, the airline has been trying to draw out potential buyers, but struggled to find a palatable option. A potential joint offer from AF-KLM and easyJet would join Lufthansa, the German airline, and Cerberus Capital Management, the private equity group, as the most likely contenders to buy Alitalia
<snip>
The entry of AF-KLM into the picture means that it could still take weeks — if not months — for Alitalia’s commissioners and the government to settle on the best offer, entering into exclusive talks with a single buyer. Most likely, this means the fate of Alitalia will be decided after the general election in Italy, set for March 4.
Alitalia and AF-KLM declined to comment.
Executives of Franco-Dutch group met Italian commissioners to discuss joining auction
James Politi in Rome and David Keohane in Paris
January 21, 2018
Air France-KLM has held talks with Alitalia about entering the race to acquire the ailing Italian flag carrier, a decade after its efforts to purchase its peer were scuppered by political opposition.
According to people familiar with the matter, Alitalia’s government-appointed commissioners met AF-KLM executives in Paris last week to discuss the Franco-Dutch airline’s interest in joining the auction, possibly through a joint bid with easyJet, the British low-cost carrier.
AF-KLM’s arrival on the scene marks a new twist in the long-running saga surrounding the fate of Alitalia, turning control of Italy’s skies into a key battleground in the European airline sector.
<snip>
Alitalia — and the Italian government — had hoped to get the sale wrapped up by the end of last year, but the offers that came in late 2017 were not considered sufficiently strong to merit any kind of exclusive negotiation, let alone a formal deal.
This prompted the commissioners to engage in a new set of talks with potential buyers, including AF-KLM, which was granted access to Alitalia’s data room after last week’s meeting, but also Delta Air Lines, the US airline, which acquired a 10 per cent stake in the French airline last year.
<snip>
Now under government control, the airline has been trying to draw out potential buyers, but struggled to find a palatable option. A potential joint offer from AF-KLM and easyJet would join Lufthansa, the German airline, and Cerberus Capital Management, the private equity group, as the most likely contenders to buy Alitalia
<snip>
The entry of AF-KLM into the picture means that it could still take weeks — if not months — for Alitalia’s commissioners and the government to settle on the best offer, entering into exclusive talks with a single buyer. Most likely, this means the fate of Alitalia will be decided after the general election in Italy, set for March 4.
Alitalia and AF-KLM declined to comment.
Originally Posted by Aeropolitical Updates
Air France-KLM in exploratory talks with Alitalia to join race to acquire ailing Italian carrier
23 Jan 2018
Air France-KLM (AF-KLM) has had discussions with struggling carrier, Alitalia, about its plans to acquire it.
People who had direct knowledge regarding the situation disclosed that government-tapped commissioners of Alitalia recently met with officials from AF-KLM in Paris last week to talk about the latter’s interest in joining the auction to acquire the Italian air company.
Sources say that this could be made possible through a joint bid with British low-cost carrier, easyJet.
Originally Posted by CH-Aviation
Alitalia starts courting Air France-KLM - report
23JAN2018
Air France-KLM Royal Dutch Airlines has engaged Alitalia (AZ, Rome Fiumicino) in early exploratory talks, sources close to the discussions have told the official ANSA news agency.
According to the report, the negotiations kicked off in Paris on Thursday, January 18. The Franco Dutch carrier, which was Alitalia's leading shareholder with a 25% stake back in 2013, was granted access to the bankrupt Italian carrier's data room "so that it may have access to information it did not previously have".
On the basis of the new data, the sources said technical teams from both sides would then meet to discuss various aspects of the talks.
Earlier this month, Air France-KLM was linked to a joint-offer with easyJet (U2, London Luton) for Alitalia, a claim it subsequently denied.
<snip>
Last Thursday, the European Commission said it would look into Rome's decision to extend a EUR600 million bridging loan to Alitalia, along with a more recent EUR300 million top up, following complaints from major rivals that it broke market regulations against state aid.
Brussels is reportedly awaiting clarification from the Italian government so it can begin assessing the case, the sources said.
Originally Posted by ANSA
(ANSA) - Paris, January 19 - Alitalia and Air France representatives had a "very cordial" first meeting over a possible takeover of the troubled Italian airline on Thursday afternoon, French sources told ANSA Friday. In the meeting, sponsored by Italian Ambassador Giandomenico Magliano, it was decided to give Air France access to Alitalia's data room "so that it may have access to information it did not previously have" on the Italian airline.
On the basis of the acquisition of new data, sources said, technical teams from both sides will meet shortly to discuss various aspects of the talks. It was recently reported that Air France had decided to view with Lufthansa for Italy's ailing former national carrier Alitalia - but Air France denied the report.
Originally Posted by ANSA
Lufthansa said earlier last week it would only consider taking over Alitalia if "major" restructuring including job and route cuts were made.
Lufthansa CEO Carsten Spohr sent a letter to Italian Industry Minister Carlo Calenda telling him that the German airline would only be willing to acquire Alitalia after major restructuring.
"While recognising the valuable measures that have been undertaken to date... we strongly believe that there remains a considerable amount of work to be achieved before Lufthansa would be in the position to enter comprehensively into the next phase of the process," Spohr said in the letter.
Under Lufthansa control the company would be smaller in terms of both staff and fleet, it said.
Lufthansa CEO Carsten Spohr sent a letter to Italian Industry Minister Carlo Calenda telling him that the German airline would only be willing to acquire Alitalia after major restructuring.
"While recognising the valuable measures that have been undertaken to date... we strongly believe that there remains a considerable amount of work to be achieved before Lufthansa would be in the position to enter comprehensively into the next phase of the process," Spohr said in the letter.
Under Lufthansa control the company would be smaller in terms of both staff and fleet, it said.
Last edited by irishguy28; Jan 24, 2018 at 4:25 am
Jan 24, 2018, 4:22 am
#536
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Originally Posted by Reuters
Wizz Air keen on Alitalia but only for short, medium-haul routes: CEO to paper
MILAN (Reuters) - Hungarian low-cost airline Wizz Air is interested in Italy’s struggling carrier Alitalia but only regarding short and medium-haul routes, Chief Executive Jozsef Varadi told La Repubblica newspaper in an interview.
“We are interested in the Italian market ... as far as Alitalia is concerned, we are only looking at the parts that are of interest to us, the short and medium haul; certainly not for the intercontinental flights,” Varadi told the paper, adding he would be visiting Italy in the coming weeks.
Jan 24, 2018, 5:59 am
#537
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It seems very likely that AFKL are therefore involved now; and particularly after Lufthansa's recent letter, may be the preferred bidder already, even without having tabled an offer.
The EU is surely not willing to accept further helps - i.e. subsidiaries - for much longer. Therefore, the only other option is closing down AZ. And that is even worse.
Jan 24, 2018, 6:29 am
#538
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This letter and its content are not really a surprise. AZ is burning lots of money since a very long time. Something is very wrong with this airline and it is more than obvious that major changes are needed in order to bring it back to earning money. Whoever will finally buy it will have to make the same or a very similar decision, be it LH, AFKL, some hedge fonds or someone else. Nobody is willing to burn every year several hundred millions of euros.
G
Jan 24, 2018, 7:29 am
#540
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Which premise sits oddly with the fact that the whole Alitalia situation hinges upon the fact that Etihad are, after all, NOT willing to burn several hundred millions of Euros every year...
