Alitalia near bankruptcy. Can it be saved?

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Passenger
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Re: Alitalia near bankruptcy. Can it be saved?

Post by Passenger » 29 Feb 2020, 22:04

sn26567 wrote:
29 Feb 2020, 16:22
EU launches antitrust probe into Italy loan to Alitalia
BRUSSELS — The European Union’s antitrust watchdog said Friday that it has launched an investigation into a loan of 400 million euros from the Italian government to national airline Alitalia to establish whether the money is illegal state aid.
https://www.nytimes.com/aponline/2020/0 ... probe.html
The above 400M is most probably about this "loan", agreed by the Italian Senate on 1th Febr 2020:
sn26567 wrote:
02 Feb 2020, 00:05
Italy’s Senate approved a government decree granting a public "loan" of €400 million to Alitalia...
.

In total, the Italian state now has given Alitalia € 600M + € 300M + € 400M = € 1,3bn. Italian aviation is going to suffer upmost from the coronavirus, making it even more impossible for the airline to refund the three loans. Alitalia's administrators therefore should do what every private company has to do with such negative prospects: throw in the towel.

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sn26567
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Re: Alitalia near bankruptcy. Can it be saved?

Post by sn26567 » 29 Feb 2020, 23:25

Reducing frequencies on 38 routes is a first step in the right direction!
André
ex Sabena #26567

Passenger
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Re: Alitalia near bankruptcy. Can it be saved?

Post by Passenger » 02 Mar 2020, 20:52

Passenger wrote:
29 Feb 2020, 22:04
sn26567 wrote:
29 Feb 2020, 16:22
EU launches antitrust probe into Italy loan to Alitalia
BRUSSELS — The European Union’s antitrust watchdog said Friday that it has launched an investigation into a loan of 400 million euros from the Italian government to national airline Alitalia to establish whether the money is illegal state aid.
https://www.nytimes.com/aponline/2020/0 ... probe.html
The above 400M is most probably about this "loan", agreed by the Italian Senate on 1th Febr 2020:
sn26567 wrote:
02 Feb 2020, 00:05
Italy’s Senate approved a government decree granting a public "loan" of €400 million to Alitalia...
In total, the Italian state now has given Alitalia € 600M + € 300M + € 400M = € 1,3bn. Italian aviation is going to suffer upmost from the coronavirus, making it even more impossible for the airline to refund the three loans. Alitalia's administrators therefore should do what every private company has to do with such negative prospects: throw in the towel.
Official press release European Commission (02/03/2020):
State aid: European Commission opens in-depth investigation into €400 million Italian government loan to Alitalia

The European Commission has opened an in-depth investigation to assess whether Italy's € 400 million loan granted to Alitalia constitutes State aid and whether it complies with the rules on State aid to companies in difficulty. The opening of an in-depth investigation is a standard step, which provides Italy and other interested parties with an opportunity to provide their views. It does not prejudge in any way the outcome of the investigation. The Commission is working closely with the Italian authorities on the matter. In late 2019, the Italian authorities announced that they would grant a new loan of €400 million to Alitalia to facilitate the streamlining of the company in order to attempt to sell its assets. The Italian decree-law authorising the loan was approved by the Italian government in December 2019. In January 2020, the decree-law was converted into law by the Italian Parliament. The decree also provides that the procedure enabling the disposal of Alitalia's assets must be carried out by 31 May 2020. A new sales process, carried out by the extraordinary commissioner, is expected to be launched shortly. In this context, the Commission's in-depth investigation will provide clarity to Italy and the company as well as interested buyer(s), if the €400 million loan constitutes State aid and if it complies with EU State aid rules. The Commission's role under the EU Treaty is to help ensure a level playing field in the EU's Single Market to the benefit of European consumers and businesses. Interested parties may trigger State aid investigations by lodging complaints with the Commission. In this case, the Commission has received a number of complaints, alleging that the loan constitutes State aid that is not compatible with the applicable EU rules.

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Re: Alitalia near bankruptcy. Can it be saved?

Post by TLspotting » 06 Mar 2020, 21:20

Alitalia administrators invite interested investors to submit EOIs for the airline by 18 March 2020. Prospective buyers can bid for the whole airline or one of its three businesses: aviation, handling or maintenance.
Last edited by TLspotting on 06 Mar 2020, 21:48, edited 1 time in total.
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Re: Alitalia near bankruptcy. Can it be saved?

Post by lumumba » 06 Mar 2020, 21:47

TLspotting wrote:
06 Mar 2020, 21:20
Alitalia administrators invite interested investors to submit EOIs for the airline by 18 March 2019. Prospective buyers can bid for the whole airline or one of its three businesses: aviation, handling or maintenance.
2019 :?:
Hasta la victoria siempre.

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Re: Alitalia near bankruptcy. Can it be saved?

Post by TLspotting » 06 Mar 2020, 21:47

lumumba wrote:
06 Mar 2020, 21:47
TLspotting wrote:
06 Mar 2020, 21:20
Alitalia administrators invite interested investors to submit EOIs for the airline by 18 March 2019. Prospective buyers can bid for the whole airline or one of its three businesses: aviation, handling or maintenance.
2019 :?:
2020. OOPSIE :lol:
I'm Thibault Lapers, spotter in Belgium for now 3 years, but not yet across the world and a huuuuuge aviation geek ! Join me on Facebook & Twitter @TLspotting

Passenger
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Re: Alitalia near bankruptcy. Can it be saved?

Post by Passenger » 10 Mar 2020, 09:35

luchtzak wrote:
10 Mar 2020, 09:14
Italy is being placed in complete lockdown over coronavirus fears

https://www.aviation24.be/miscellaneous ... rus-fears/
Corona is an excellent opportunity for the Italian government (and/or Alitalia's administrators) to do what has to be done. Close it down, blame it on the virus.

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Re: Alitalia near bankruptcy. Can it be saved?

Post by Stij » 10 Mar 2020, 09:49

Passenger wrote:
10 Mar 2020, 09:35
Corona is an excellent opportunity for the Italian government (and/or Alitalia's administrators) to do what has to be done. Close it down, blame it on the virus.
My 2 cents: That should be done, but they'll do exactly the opposite. They'll use the virus as an excuse to pump in even more money...

Cheers,

Stij

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Re: Alitalia near bankruptcy. Can it be saved?

Post by convair » 10 Mar 2020, 16:18

Stij wrote:
10 Mar 2020, 09:49
Passenger wrote:
10 Mar 2020, 09:35
Corona is an excellent opportunity for the Italian government (and/or Alitalia's administrators) to do what has to be done. Close it down, blame it on the virus.
My 2 cents: That should be done, but they'll do exactly the opposite. They'll use the virus as an excuse to pump in even more money...

Cheers,

Stij
:lol: I fully agree with you.

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Re: Alitalia near bankruptcy. Can it be saved?

Post by lumumba » 10 Mar 2020, 18:02

convair wrote:
10 Mar 2020, 16:18
Stij wrote:
10 Mar 2020, 09:49
Passenger wrote:
10 Mar 2020, 09:35
Corona is an excellent opportunity for the Italian government (and/or Alitalia's administrators) to do what has to be done. Close it down, blame it on the virus.
My 2 cents: That should be done, but they'll do exactly the opposite. They'll use the virus as an excuse to pump in even more money...

Cheers,

Stij
:lol: I fully agree with you.
Hopefully they do so....
Hasta la victoria siempre.

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cathay belgium
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Re: Alitalia near bankruptcy. Can it be saved?

Post by cathay belgium » 10 Mar 2020, 18:12

Hi,

Hope not...
After Air Italy, Alitalia.. and leaving Italy like Hungary with only Wizz,Ryanair and a foreign invader LOT ?
God hell no !

Haha..

Guess Alitalia can take a virus, government opens up 10 billion Corona aid is ;)
So with Corona Alitalia can have it's share :)

Avgeeks hoping on a destruction of an old carrier shame on you...
Guess first Norwegian, SN turning to positive results? , ...



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nordikcam
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Re: Alitalia near bankruptcy. Can it be saved?

Post by nordikcam » 10 Mar 2020, 18:16

But Alitalia is a "Tonneau of 60.000.000 Danaïdes" !
I don't have a translation for the expression "Tonneau des Danaïdes"! Sorry

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Re: Alitalia near bankruptcy. Can it be saved?

Post by cathay belgium » 10 Mar 2020, 18:19

Hi,

It all depends on who's drinking from the other end of ' le tonneau' ;)

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Re: Alitalia near bankruptcy. Can it be saved?

Post by sn26567 » 16 Mar 2020, 21:02

Alitalia is quickly running out of cash, leaving the option for new state financing or syphoning off the mainline unit to a new public vehicle. Both results will cancel the sale and return the carrier to nationalisation.

Rome was planning an immediate intervention in favour of the air transport industry worth €500 million, followed by other measures worth €3 billion.
André
ex Sabena #26567

Poiu
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Re: Alitalia near bankruptcy. Can it be saved?

Post by Poiu » 16 Mar 2020, 22:16

Not sure if the EU will buy into this.
Both Willie Walsh (IAG) and Johan Lundgren (U2) said the EU should not allow bailout but should provide temporary credit lines.

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Re: Alitalia near bankruptcy. Can it be saved?

Post by lumumba » 17 Mar 2020, 01:51

Chances are that after this big economic problem the economic system will be different...but let's see.
But one thing is sure I think we are going to get out of this budget restriction for a while to get out of this crisis.
And our national debt will surely increase enormously but this will be the only way.
And I believe that no budgetary rigor will be imposed in the coming years to recover!
I'm sure Italy will do everything to nationalise Alitalia to save it. .
Hasta la victoria siempre.

Belgaviation
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Re: Alitalia near bankruptcy. Can it be saved?

Post by Belgaviation » 17 Mar 2020, 11:02

It is official in the meantime: Italian government to take control of Alitalia: draft decree

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Re: Alitalia near bankruptcy. Can it be saved?

Post by Stij » 17 Mar 2020, 11:49

Stij wrote:
10 Mar 2020, 09:49
Passenger wrote:
10 Mar 2020, 09:35
Corona is an excellent opportunity for the Italian government (and/or Alitalia's administrators) to do what has to be done. Close it down, blame it on the virus.
My 2 cents: That should be done, but they'll do exactly the opposite. They'll use the virus as an excuse to pump in even more money...

Cheers,

Stij
I hate it when I'm right...

Helping viable companies during this crisis is one, helping the not even walking dead is another...

Stij

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Re: Alitalia near bankruptcy. Can it be saved?

Post by cathay belgium » 17 Mar 2020, 12:04

Hi,

I always said it won't be over, didn't I haha

Instead of discussing this foreseen bad ridiculous action... Will the Corona crisis give aviation a new wave of nationalisations and bring back true flag carriers.

KLM-AF , IAG, Lufthansa and sons... are begging for state aid.. and will they get a blanco cheque ...
It is it time for governments to take back control of such highly important economic and social tasks in this globalised world ?

We will see but for now..#blijfinuwkot

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Re: Alitalia near bankruptcy. Can it be saved?

Post by Inquirer » 17 Mar 2020, 12:17

Belgaviation wrote:
17 Mar 2020, 11:02
It is official in the meantime: Italian government to take control of Alitalia: draft decree
Pretty much as expected; France is also contemplating stepping in AF, btw.

it's within the boundries of realism now that most national carriers will be receiving massive government aid in one way or another, as they are deemed systemic infrastructure needed to be under direct control of the state to help relaunch the economy after the pandemic wil be over and the long and slow recovery will have to be started: in that moment, as a country, you do not want to be left to the mercy of others as they will logically prioritize their own domestic needs over those of you.

Contrary to national airlines, it will be much harder for non-nation affiliated pan-European airlines to crape together sufficient funds and gain access to the required financial instruments to keep them afloat for the next 3 to 6 months (and beyond), and even then... the aviation landscape may look completely different by next year.

Knowing a full economic reset in about to happen at least in aviation, it may even be a smart move of a country to already be strategically positioning itself so it can take full benefit of this unique opportunity to suddenly catch up with those countries who seemed to be lightyears ahead. The reset allows you to somehow undo strategic errors from the past, of which you have meanwhile seen the full outcome.... ;)

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