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Looks like Alitalia will be exiting the TATL JV

Looks like Alitalia will be exiting the TATL JV

Old Jul 22, 2018, 10:07 pm
  #16  
 
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Originally Posted by TBD
The quote in the OP specifically mentions terminating the agreement with AZ, so this is clearly an option. (we're unlikely to ever know the details)

At the rate Alitalia was disappearing from the various Delta advertisements, I actually thought the divorce proceedings had already started.

OP: Not sure how you found this, but good investigative work.
Very common in contracts of all types that the bankruptcy of a party is a default and grounds for termination. That's almost standard language.
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Old Jul 23, 2018, 6:50 am
  #17  
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Media coverage of the Alitalia exit:

https://www.flightglobal.com/news/ar...e-pact-450560/
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Old Jul 23, 2018, 3:20 pm
  #18  
 
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With DL releasing an embarrassing amount of inventory for Business Class tickets, AZ was a good option back in the day. In recent years (since they're current batch of problems) AZ has stopped giving inventory to SkyTeam partners...even when they have availability with AZ miles
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Old Jul 23, 2018, 3:32 pm
  #19  
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Originally Posted by FlyAO2
With DL releasing an embarrassing amount of inventory for Business Class tickets, AZ was a good option back in the day. In recent years (since they're current batch of problems) AZ has stopped giving inventory to SkyTeam partners...even when they have availability with AZ miles
Agree. I've tried booking them multiple times, just to ensure at least one last trip on them. Have been able to do it once, even on their new route to JNB that was basically empty for awhile. I finally have on award booked Dec 26th LAX-FCO- JNB in J. You'd think AZ would take whatever money it can get from partners for selling an award seat.
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Old Jul 23, 2018, 3:33 pm
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I don't think AZ is getting the boot early, but more if they aren't in the long term plans, there is little reason to add them to what is going to be a complicated government process of joining the DL/VS JV with the DL/AFKL JV. It's not like AZ has been pulling their weight recently (or ever)

AF/KL could always add a flight or two timed for US TATL flights to some Italian cities and the DL/AF/KL/VS JV can all just walk away happier without their dysfunctional Italian Cousin
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Old Jul 23, 2018, 3:36 pm
  #21  
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Originally Posted by kop84
I don't think AZ is getting the boot early, but more if they aren't in the long term plans, there is little reason to add them to what is going to be a complicated government process of joining the DL/VS JV with the DL/AFKL JV. It's not like AZ has been pulling their weight recently (or ever)

AF/KL could always add a flight or two timed for US TATL flights to some Italian cities and the DL/AF/KL/VS JV can all just walk away happier without their dysfunctional Italian Cousin
One less party will make getting ATI easier. Technically means more competition .
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Old Jul 23, 2018, 6:36 pm
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Originally Posted by vbjd1111
Very common in contracts of all types that the bankruptcy of a party is a default and grounds for termination. That's almost standard language.
Let's not forget that Delta went bankrupt about a decade ago, yet remained in SkyTeam. Over the course of history, periodic insolvency seems like part of the airline game. Not sure about the language/jurisdictions/etc. of the contract, but would assume that the JV contract was not standard paper.
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Old Jul 23, 2018, 6:49 pm
  #23  
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Originally Posted by worldwidedreamer
Let's not forget that Delta went bankrupt about a decade ago, yet remained in SkyTeam. Over the course of history, periodic insolvency seems like part of the airline game. Not sure about the language/jurisdictions/etc. of the contract, but would assume that the JV contract was not standard paper.
One, DL is founding member of ST. Two, DL is major member. While by no means as small as say Czech, AZ is a very small member of ST. Its main benefit to ST being smaller Italian cities. Three, while bankrupt, DL didn't have some of the underlying issues that AZ does.
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Old Jul 24, 2018, 7:42 pm
  #24  
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Unless someone here is a lawyer in the airline industry, unlikely that anyone here will ever know what a "standard contract" is for a JV in this business (if a standard even exists).

Originally Posted by flyerCO
One, DL is founding member of ST. Two, DL is major member. While by no means as small as say Czech, AZ is a very small member of ST. Its main benefit to ST being smaller Italian cities. Three, while bankrupt, DL didn't have some of the underlying issues that AZ does.
Point being, though, that airlines face bankruptcy and other unusual challenges far more frequently than in normal business relationships.
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Old Jul 24, 2018, 8:56 pm
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Originally Posted by TBD
Unless someone here is a lawyer in the airline industry, unlikely that anyone here will ever know what a "standard contract" is for a JV in this business (if a standard even exists).



Point being, though, that airlines face bankruptcy and other unusual challenges far more frequently than in normal business relationships.
Agreed. My point was comparing AZ bankruptcy with DL is hardly apples to apples.
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Old Jul 24, 2018, 10:10 pm
  #26  
 
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-raises hand-

Question. I'm looking at booking flights for next spring. When do we think that Alitalia will cease being a partner of Delta?
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Old Jul 24, 2018, 11:20 pm
  #27  
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Originally Posted by aquamarinesteph
-raises hand-

Question. I'm looking at booking flights for next spring. When do we think that Alitalia will cease being a partner of Delta?
Leaving the JV doesn't mean leaving ST. They're likely to still be a partner for awhile.
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Old Jul 25, 2018, 6:53 am
  #28  
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Originally Posted by flyerCO
Leaving the JV doesn't mean leaving ST. They're likely to still be a partner for awhile.
And usually if you book under one mileage earning scheme, they will honor it though you may have to fight for it.
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Old Jul 25, 2018, 6:59 am
  #29  
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This is good news. Don't let the door hit your APU on the way out Alitalia.
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