Alitalia execs come to Atlanta for “merger talks”
Jan 6, 2019, 7:42 am
#1
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Alitalia execs come to Atlanta for “merger talks”
Well, this is an unexpected turn of events. I doubt it’s a full merger, but maybe something like a southern version of the VS arrangement? Hard to see how it works out though if there’s no employment changes at an airline that’s hemmirrhaging cash.
https://www.bloomberg.com/news/artic...al-stampa-says
https://www.bloomberg.com/news/artic...al-stampa-says
Jan 6, 2019, 7:58 am
#3
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The Bloomberg article suggests this could be a complicated, multi-party transaction with some separation of long-haul vs. short-haul routes. But I don't see how Alitalia without job cuts is anything but a perpetual basket-case.
Jan 6, 2019, 2:27 pm
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. . . particularly considering the unstable Italian government. It's a nightmare dealing with Italian bureaucracy even in the best circumstances, but now . . . .
Jan 6, 2019, 2:39 pm
#6
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Hauenstein used to be an executive for AZ. This reminds me of Richard Anderson's career with both PMNW and PMDL before the merger. First hire one of their top executives, then do a merger.
Maybe one advantage of DL buying AZ is that it would prevent LH from buying AZ.
However, someone is seriously crazy if they think that there won't be any loses of AZ jobs if DL buys them. In fact, I would think that terminating a lot of employees without having to pay them lots of money would need to be part of any deal.
Maybe one advantage of DL buying AZ is that it would prevent LH from buying AZ.
However, someone is seriously crazy if they think that there won't be any loses of AZ jobs if DL buys them. In fact, I would think that terminating a lot of employees without having to pay them lots of money would need to be part of any deal.
Jan 6, 2019, 5:10 pm
#8
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But DL kicking in some cash in order to somehow have a percentage of the TATL flight stream is not unreasonable.
EDIT: As a shareholder in DL, I hope not,
Jan 6, 2019, 5:28 pm
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Jan 7, 2019, 12:20 am
#13
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DL can't really buy AZ. They'd buy a partial stake (49% at most) - not a complete buyout, which i'm not sure is allowed by the EU.
Although one could argue that DL virtually has majority ownership of VS...
Although one could argue that DL virtually has majority ownership of VS...
Jan 7, 2019, 2:49 am
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Jan 7, 2019, 2:51 am
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As such, all revenues on the "TATL flight stream" are already shared amongst all participants.
(AZ actually wants to go alone, though. Their larger partners are preventing them from expanding on TATL)