Unions voted down recapitalisation plan [Merged future of Alitalia thread]
Feb 13, 2019, 1:31 pm
#691
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G
Feb 13, 2019, 1:50 pm
#692
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Delta and easyJet together are looking for about 40% of the company; Air France-KLM won't be joining the rescue after all.
(AF-KL's purchase of 31% of Virgin Atlantic from Richard Branson was cleared by the EC yesterday; perhaps they are now content with their investments in other airlines together with Delta!)
(AF-KL's purchase of 31% of Virgin Atlantic from Richard Branson was cleared by the EC yesterday; perhaps they are now content with their investments in other airlines together with Delta!)
Originally Posted by Bloomberg
Delta confirmed it had submitted a nonbinding letter of interest to Ferrovie about “a consortium approach in a future Alitalia together with easyJet.” Neither airline disclosed details of their possible roles in resuscitating the Italian airline.
The foreign carriers are considering whether to jointly buy as much as 40 percent of Alitalia, the people said.
Delta, based in Atlanta, has used international partnerships and equity investments to expand its footprint without relying solely on its own fleet and resources. The company’s holdings include 49 percent of Virgin Atlantic Airways Ltd., 49 percent of Grupo Aeromexico SAB and 3.6 percent of China Eastern Airlines Corp.
Air France, Lufthansa
Air France-KLM Group, a former shareholder in Alitalia and now 10 percent owned by Delta, isn’t interested in joining the rescue, while Deutsche Lufthansa AG would be interested only if the Italian airline restructured first, daily newspaper Il Messaggero reported Tuesday.
The foreign carriers are considering whether to jointly buy as much as 40 percent of Alitalia, the people said.
Delta, based in Atlanta, has used international partnerships and equity investments to expand its footprint without relying solely on its own fleet and resources. The company’s holdings include 49 percent of Virgin Atlantic Airways Ltd., 49 percent of Grupo Aeromexico SAB and 3.6 percent of China Eastern Airlines Corp.
Air France, Lufthansa
Air France-KLM Group, a former shareholder in Alitalia and now 10 percent owned by Delta, isn’t interested in joining the rescue, while Deutsche Lufthansa AG would be interested only if the Italian airline restructured first, daily newspaper Il Messaggero reported Tuesday.
Feb 13, 2019, 1:51 pm
#693
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Clearly the number of votes they plan to win (not least because of the "fight" against the EU when the commission will rule against the whole operation for illegal state aid) is larger than the number of votes they could lose because of the waste of money.
Feb 13, 2019, 1:54 pm
#694
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It is baffling to say the least that, in a country with thousands of other priorities, the government (by all means a case of history repeating here as previous governments had adopted exactly the same modus-operandi) is again ready to inject public money into an airline which has had no strategic importance whatsoever for a good number of years now and that has shrunk dramatically in the last decade (quick data point: from a fleet of over 200 aircraft back in the days of Malpensa to just over 100 planes as we speak and a mediocre network).
G
Originally Posted by Bloomberg
While Ferrovie is assembling the rescue group and creating a new company after the bankruptcy process, about 3 billion euros of debt may be left to Italian taxpayers in a so-called bad company, according to Andrea Giuricin, a professor at Milan Bicocca University.
Feb 14, 2019, 2:10 am
#697
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It is baffling to say the least that, in a country with thousands of other priorities, the government (by all means a case of history repeating here as previous governments had adopted exactly the same modus-operandi) is again ready to inject public money into an airline which has had no strategic importance whatsoever for a good number of years now and that has shrunk dramatically in the last decade (quick data point: from a fleet of over 200 aircraft back in the days of Malpensa to just over 100 planes as we speak and a mediocre network).
As usual...
Feb 14, 2019, 12:17 pm
#699
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In a brief statement with a couple of Italian mainstream’s news agencies, one of the main unions’ leader expressed his content towards the fact that Lufthansa wasn’t allowed to enter the crucial negotiations as “they would have reduced Alitalia into no more than a regional player” (
Yes, because they are a global player as we speak and clearly the likes of BA/LH/AF are struggling to keep up! ). I’m not entirely sure whether the unions are just playing stupid or if they have been living in a box/different planet for the last 20 years or so, but this clearly says it all on why any airline/investor has never succeeded and will never do so in turning things around with Alitalia. It’s just a pointless exercise and I’m amazed that Delta and a well-run carrier like EasyJet have decided to go ahead (to do what is not clear yet, but...).
G
Yes, because they are a global player as we speak and clearly the likes of BA/LH/AF are struggling to keep up! ). I’m not entirely sure whether the unions are just playing stupid or if they have been living in a box/different planet for the last 20 years or so, but this clearly says it all on why any airline/investor has never succeeded and will never do so in turning things around with Alitalia. It’s just a pointless exercise and I’m amazed that Delta and a well-run carrier like EasyJet have decided to go ahead (to do what is not clear yet, but...).G
Last edited by AlicorporateUK; Feb 14, 2019 at 12:22 pm
Feb 14, 2019, 12:27 pm
#700
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I think the reason Alitalia manages to stagger along as a zombie company is that no government wants to be the one who "closed" Alitalia......everyone knows it is a pointless effort to keep it alive, the idea that the State Railways have a logical interest to invest in Alitalia is beyond any credibility, it is just political inertia, trying to kick the can down the road again for a few years i'm afraid....
Feb 14, 2019, 12:40 pm
#701
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How about this: the Italian government might keep more than 50% shares in the new Alitalia 
Feb 14, 2019, 12:50 pm
#702
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I think the reason Alitalia manages to stagger along as a zombie company is that no government wants to be the one who "closed" Alitalia......everyone knows it is a pointless effort to keep it alive, the idea that the State Railways have a logical interest to invest in Alitalia is beyond any credibility, it is just political inertia, trying to kick the can down the road again for a few years i'm afraid....
G
Feb 17, 2019, 6:26 am
#703
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If you read the Bloomberg article well, then you will realize that nothing has been decided so far (bolding is mine):
In other words:
I am wonding when the EU will insist on paying back the loan, as this endless saga is not acceptable from a competitors point of view (subsidaries) and the not-paid back state load is putting additionaly burden to already high Italian government deficit. If that happens, AZ will stop operating.
The two airlines are interested in potentially teaming up to run Alitalia with Italian state railway Ferrovie dello Stato ...
Discussions among the potential partners will focus on “the definition of the main aspects of the new Alitalia plan,” Ferrovie said in the statement. EasyJet confirmed on Thursday talks on “forming a consortium to explore options” for the Italian carrier’s future operations.
...
EasyJet cautioned that there was no certainty the talks would lead to a transaction.
Following reports in Italian media over the weekend, Delta confirmed its plan for a partnership with EasyJet. The U.S. company said late Wednesday that it had submitted a nonbinding letter of interest to Ferrovie about “a consortium approach in a future Alitalia together with EasyJet.”
Discussions among the potential partners will focus on “the definition of the main aspects of the new Alitalia plan,” Ferrovie said in the statement. EasyJet confirmed on Thursday talks on “forming a consortium to explore options” for the Italian carrier’s future operations.
...
EasyJet cautioned that there was no certainty the talks would lead to a transaction.
Following reports in Italian media over the weekend, Delta confirmed its plan for a partnership with EasyJet. The U.S. company said late Wednesday that it had submitted a nonbinding letter of interest to Ferrovie about “a consortium approach in a future Alitalia together with EasyJet.”
- They said that they are cooperating in a potential partial take-over of AZ
- They need to look into the books
- They need to sort out if any buisness plan could be set-up and how that would look like
- They don't promise anything: no take-over, no investment, no staff reductions, no nothing
I am wonding when the EU will insist on paying back the loan, as this endless saga is not acceptable from a competitors point of view (subsidaries) and the not-paid back state load is putting additionaly burden to already high Italian government deficit. If that happens, AZ will stop operating.
Feb 17, 2019, 7:11 am
#704
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I am wonding when the EU will insist on paying back the loan, as this endless saga is not acceptable from a competitors point of view (subsidaries) and the not-paid back state load is putting additionaly burden to already high Italian government deficit. If that happens, AZ will stop operating.