Unions voted down recapitalisation plan [Merged future of Alitalia thread]
Jan 30, 2019, 7:34 am
#676
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Problem is, though, that any restructuring plan (which is of course vital) will meet strong resistance from the unions and has all the potential to end up like back in 2008 when good-old Jean-Cyril [Spinetta] simply had enough dealing with those clowns (slightly worse than their French counterparts) and left the negotiating table.
LH is quite strong in Italy for long distance connections and is owning with EN an own Italian subsidiary. If LH joins forces with a low cost carrier and pushes heavily into the Italian market, then there are rough times ahead for AZ without the needed reforms. AF/KL could also easily stretch into Italy. However, it is a lot easier if you take over the best known airline. But for what price?
Jan 30, 2019, 8:05 am
#677
Join Date: Oct 2009
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LH is quite strong in Italy for long distance connections and is owning with EN an own Italian subsidiary. If LH joins forces with a low cost carrier and pushes heavily into the Italian market, then there are rough times ahead for AZ without the needed reforms. AF/KL could also easily stretch into Italy. However, it is a lot easier if you take over the best known airline. But for what price?
G
Jan 30, 2019, 8:33 am
#678
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Jan 30, 2019, 10:03 am
#679
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Let's wait and see what the EU says. Don't forget there have been tough discussions regarding Italian deficit numbers and this move is clearly not helping to reduce the deficit as it was promised that the load will be paid back. I am not going to bet anything on the outcome of this topic.
Jan 30, 2019, 7:32 pm
#680
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Seems like they have delayed their choice of a partner once again. If this keeps up I am afraid Delta will walk away, Lufthansa will not get the concessions it wants and also will walk away. Then the only outcome will be liquidation and not one wins.
Jan 30, 2019, 11:37 pm
#681
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Feb 1, 2019, 10:16 am
#682
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I however fail to understand why/how the likes of Lufthansa or Delta would benefit even from [Dream On] a full take-over: leaving the jolly politics/unions' combo on one side for a moment, Lufthansa operates nearly 20 (!) daily services out of Milan alone plus an average of (roughly) 5 flights a day from virtually all regional airports above Florence (see Bologna, Venice etc.) to both Frankfurt & Munich, which is impressive to say the least and will surely bring a significant number of connecting passengers; plus, considering the predominantly leisure-prone market that is Alitalia's stronghold (Rome), again I can't see any logic in a potential take-over, apart from a few extra slots at Linate, which would be subject to competition's rules anyway.
For anybody, however, the cost of dealing with the AZ industrial relations and political baggage creates a huge risk that exceeds the potential gains that one might hope from this so no-one will touch AZ with a bargepole without firm guarantees on that front. AFKL have had their fingers burnt on this one and, in any event, don't have the cash to indulge in those kinds of risks as they have other cats to whip, as the French would say.
Feb 12, 2019, 10:07 am
#683
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Reports:AF-KL pulling out of AZ process due to deteriorating Franco-Italian relations
Originally Posted by thelocal.it
Air France is pulling out of a deal that would save struggling Italian airline Alitalia for “political reasons”, Italian media reports.
The Ferrovie dello Statto (FS) rail group, which is handling the deal, had yesterday been expecting a formal commitment from the Air France-KLM board, which has been considering a part in the deal alongside Delta airlines.
But no commitment came from Paris, FS said.
Il Sole 24 Ore reported that there were political reasons behind Air France’s sudden U-turn on the planned deal, amid an escalating diplomatic row between France and Italy.
The Ferrovie dello Statto (FS) rail group, which is handling the deal, had yesterday been expecting a formal commitment from the Air France-KLM board, which has been considering a part in the deal alongside Delta airlines.
But no commitment came from Paris, FS said.
Il Sole 24 Ore reported that there were political reasons behind Air France’s sudden U-turn on the planned deal, amid an escalating diplomatic row between France and Italy.
Feb 12, 2019, 3:37 pm
#684
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Previous report is denied by the Government...
Originally Posted by New Europe
Air France-KLM is considering a takeover of Italy’s national flag carrier Alitalia, the Deputy Prime Minister of Italy, Luigi Di Maio, said while adding that the French airline remains committed to the deal despite a recent diplomatic spat between Paris and Rome,
The offer for Alitalia is a joint bid with the Italian state-owned train conglomerate Ferrovie dello Stato (FS), Air France-KLM, and the US-based Delta Airlines.
The offer for Alitalia is a joint bid with the Italian state-owned train conglomerate Ferrovie dello Stato (FS), Air France-KLM, and the US-based Delta Airlines.
Feb 12, 2019, 3:39 pm
#685
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In fact, Bloomberg reports Corriere della Sera as reporting that Delta is now looking to rope Easyjet into the deal...
Originally Posted by Bloomberg
Delta Air Lines Inc. suggested a partnership with rival Alitalia bidder EasyJet Plc that would involve a less costly contract with the bankrupt airline’s staff, while retaining operational centers at Italy’s Fiumicino and Malpensa airports, Corriere della Sera reported.
Feb 13, 2019, 10:12 am
#689
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Peeps, with the European elections coming up, the populists forming the Italian “government” will be wary of taking any decision involving restructuring as this will translate in redundancies and consequently unrest from the unions, strikes and you name it, clearly you don’t want that before an election. You all forget what happened back in 2008 when Air France had a decent plan (wanting to take over debts and only asking for ~2,000 redundancies, mostly ground personnel), they were eventually forced to abandon the negotiating table (with unions and Alitalia staff celebrating...). In a nutshell, nothing will come out of today’s board meeting.
G
G
Feb 13, 2019, 1:06 pm
#690
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FS has chosen easyjet and Delta (italian, use incognito to circumvent paywall) to save AZ.
The Italian government also appears to put money in the operation (shocker).
The Italian government also appears to put money in the operation (shocker).