Alitalia saved by the Government and reborn as ITA Airways
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Re: Alitalia near bankruptcy. Will it be saved by Etihad?
Small correction or update: SN has +- 3300 employees
Re: Alitalia near bankruptcy. Will it be saved by Etihad?
As I wrote... source was Wkipedia...
The ratio is then 60% more per aircraft...
Cheers,
Stij
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Re: Alitalia near bankruptcy. Will it be saved by Etihad?
Any risk to see AZ ceasing all operations wthin the next 2 or 3 months?
Re: Alitalia near bankruptcy. Will it be saved by Etihad?
Probably not, if they can pull it off to ground those planes and if they can cut the art of personell they want to cut, they'll be able to survive a little bit longer. And maybe EY will put another billion or so in Alitalia.
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Re: Alitalia near bankruptcy. Will it be saved by Etihad?
The Board of Directors (BoD) of Alitalia met today to hear an update about the airline’s proposed re-launch business plan following work made by independent advisor Roland Berger. The Board agreed that a final adjusted business plan will be approved by the end of this week.
In the framework of a complex financial situation, the Board of Directors noted the good commercial performances recorded by Alitalia in January. Aircraft load factors in January reached 78 per cent, an increase of 4.4 percentage points compared to the same month in 2016. Ticket sales in January recorded a 7 per cent increase, again compared to the previous year. Preliminary data for February is also promising.
The airline’s on-time performance index in February scored 88.9 per cent.
The Board was also presented with Alitalia’s financial situation and progress made on the cost savings plan by CEO Cramer Ball. He explained that the carrier is in line to achieve at least €160 million of cost savings in 2017, not including labour costs, as announced at the January meeting of the Board. Ball has also shown that further savings, again not related to labour costs, have been identified and will be implemented in a planned timeframe.
In the framework of a complex financial situation, the Board of Directors noted the good commercial performances recorded by Alitalia in January. Aircraft load factors in January reached 78 per cent, an increase of 4.4 percentage points compared to the same month in 2016. Ticket sales in January recorded a 7 per cent increase, again compared to the previous year. Preliminary data for February is also promising.
The airline’s on-time performance index in February scored 88.9 per cent.
The Board was also presented with Alitalia’s financial situation and progress made on the cost savings plan by CEO Cramer Ball. He explained that the carrier is in line to achieve at least €160 million of cost savings in 2017, not including labour costs, as announced at the January meeting of the Board. Ball has also shown that further savings, again not related to labour costs, have been identified and will be implemented in a planned timeframe.
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Re: Alitalia near bankruptcy. Will it be saved by Etihad?
So some elements seem to look quite "promising"? On the other hand, it is said that AZ will run out of cash in April... Curious (and anxious) to know about what will follow...Boeing767copilot wrote: ↑06 Mar 2017, 17:16 The Board of Directors (BoD) of Alitalia met today to hear an update about the airline’s proposed re-launch business plan following work made by independent advisor Roland Berger. The Board agreed that a final adjusted business plan will be approved by the end of this week.
In the framework of a complex financial situation, the Board of Directors noted the good commercial performances recorded by Alitalia in January. Aircraft load factors in January reached 78 per cent, an increase of 4.4 percentage points compared to the same month in 2016. Ticket sales in January recorded a 7 per cent increase, again compared to the previous year. Preliminary data for February is also promising.
The airline’s on-time performance index in February scored 88.9 per cent.
The Board was also presented with Alitalia’s financial situation and progress made on the cost savings plan by CEO Cramer Ball. He explained that the carrier is in line to achieve at least €160 million of cost savings in 2017, not including labour costs, as announced at the January meeting of the Board. Ball has also shown that further savings, again not related to labour costs, have been identified and will be implemented in a planned timeframe.
Re: Alitalia near bankruptcy. Will it be saved by Etihad?
You have bankruptcy and bankruptcy in aviation, I learned with my communications with another airline ...brusselsairlinesfan wrote: ↑06 Mar 2017, 17:23So some elements seem to look quite "promising"? On the other hand, it is said that AZ will run out of cash in April... Curious (and anxious) to know about what will follow...Boeing767copilot wrote: ↑06 Mar 2017, 17:16 The Board of Directors (BoD) of Alitalia met today to hear an update about the airline’s proposed re-launch business plan following work made by independent advisor Roland Berger. The Board agreed that a final adjusted business plan will be approved by the end of this week.
In the framework of a complex financial situation, the Board of Directors noted the good commercial performances recorded by Alitalia in January. Aircraft load factors in January reached 78 per cent, an increase of 4.4 percentage points compared to the same month in 2016. Ticket sales in January recorded a 7 per cent increase, again compared to the previous year. Preliminary data for February is also promising.
The airline’s on-time performance index in February scored 88.9 per cent.
The Board was also presented with Alitalia’s financial situation and progress made on the cost savings plan by CEO Cramer Ball. He explained that the carrier is in line to achieve at least €160 million of cost savings in 2017, not including labour costs, as announced at the January meeting of the Board. Ball has also shown that further savings, again not related to labour costs, have been identified and will be implemented in a planned timeframe.
https://www.aviation24.be/airlines/vim-air ... -of-reply/
Re: Alitalia near bankruptcy. Will it be saved by Etihad?
Alitalia board approved 2017-2021 business plan, which includes:
- €1 billion cost reductions by 2019;
- revenue to increase 30% by 2019;
- Buy-on-board instead of complimentary food and drinks on flights of less than 4 hrs;
- denser seating on short-haul flights;
- profitability by 2019;
- fleet reduced by 20 narrow-body aircraft;
- renegotiated aircraft lease contracts; and
- new competitive proposition for short and medium-haul aircraft fleet.
https://www.aviation24.be/airlines/alitali ... 2017-2021/
- €1 billion cost reductions by 2019;
- revenue to increase 30% by 2019;
- Buy-on-board instead of complimentary food and drinks on flights of less than 4 hrs;
- denser seating on short-haul flights;
- profitability by 2019;
- fleet reduced by 20 narrow-body aircraft;
- renegotiated aircraft lease contracts; and
- new competitive proposition for short and medium-haul aircraft fleet.
https://www.aviation24.be/airlines/alitali ... 2017-2021/
André
ex Sabena #26567
ex Sabena #26567
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Re: Alitalia near bankruptcy. Will it be saved by Etihad?
Is the strike on April, 5th still planned?
Re: Alitalia near bankruptcy. Will it be saved by Etihad?
Yes. More than ever!
André
ex Sabena #26567
ex Sabena #26567
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Re: Alitalia near bankruptcy. Will it be saved by Etihad?
'hope they will be able to avoid a Sabena/Swissair bankruptcy scenario...
Re: Alitalia near bankruptcy. Will it be saved by Etihad?
Alitalia may receive €400 million in emergency financing from the government, as the carrier risks running out of cash in a few weeks because investors and creditors are reluctant to fund a new rescue plan without a labour agreement on job cuts.
Not sure that the European Commission will like this kind of state aid...
Not sure that the European Commission will like this kind of state aid...
André
ex Sabena #26567
ex Sabena #26567
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Re: Alitalia near bankruptcy. Will it be saved by Etihad?
That does not sound good...sn26567 wrote: ↑27 Mar 2017, 22:52 Alitalia may receive €400 million in emergency financing from the government, as the carrier risks running out of cash in a few weeks because investors and creditors are reluctant to fund a new rescue plan without a labour agreement on job cuts.
Not sure that the European Commission will like this kind of state aid...
Re: Alitalia near bankruptcy. Will it be saved by Etihad?
If the Italian government give the money as a rent to Alitalia with a normal interest rate, there is no problem. Hopefully they won't give it for free, then the Commission will start a case and the result will be the same as Estonian Air (give the money back and even bankruptcy?).
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Re: Alitalia near bankruptcy. Will it be saved by Etihad?
What does strike me is the fact that investors and creditors are now reluctant to fund a new rescue plan (OK... unless a labour agreement on new restructuring plan incl. job cuts and lowered pay rolls).
Re: Alitalia near bankruptcy. Will it be saved by Etihad?
Well I do understand them. Why would you always put money in an airline which only makes losses year after year? I understand that they want some adaptions to decrease the losses. And although it may be hard, but if an airline only makes losses, it is maybe better to let it go. They did the same with Sabena, although their losses were much much less than Alitalia. For me, it is already a small miracle that Aliltalia is still alive.
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Re: Alitalia near bankruptcy. Will it be saved by Etihad?
Hi! Can someone give some more news regarding AZ... The airline was supposed to run out of cash by the end of the month...
Re: Alitalia near bankruptcy. Will it be saved by Etihad?
Alitalia discussions with labour unions and the government failed as workers baulked at the prospect of heavy job and salary cuts that Italy’s flagship carrier says are necessary to keep operating.brusselsairlinesfan wrote: ↑12 Apr 2017, 21:57 Hi! Can someone give some more news regarding AZ... The airline was supposed to run out of cash by the end of the month...
The latest turnaround plan for the ailing airline envisages cutting more than 2,000 jobs among ground staff and reducing flight personnel's salaries by up to a third in a last-ditch attempt to make the company profitable.
The government had hoped to win union backing for the plan by April 13, so that investors in the airline, which include Etihad Airways with a 49 percent stake and Italy's top two banks Intesa Sanpaolo and UniCredit could launch a cash call on the following day.
But the unions, whose support for the plan is crucial for shareholders to unlock fresh financing, said they were unwilling to accept any further sacrifices.
Despite several overhauls and cash injections over the years, Alitalia is losing at least half a million euros a day and could run out of cash in coming weeks unless shareholders agree to pump in more money
I see a Sabena scenario looming...
More: http://finance.yahoo.com/news/last-ditc ... 07010.html
André
ex Sabena #26567
ex Sabena #26567
Re: Alitalia near bankruptcy. Will it be saved by Etihad?
Well, the Sabena scenario has been avoided at the very last minute (at least this time), with an overnight agreement between shareholders, management and staff/trade unions.sn26567 wrote: ↑14 Apr 2017, 14:57 Alitalia discussions with labour unions and the government failed as workers baulked at the prospect of heavy job and salary cuts that Italy’s flagship carrier says are necessary to keep operating. The latest turnaround plan for the ailing airline envisages cutting more than 2,000 jobs among ground staff and reducing flight personnel's salaries by up to a third in a last-ditch attempt to make the company profitable. The government had hoped to win union backing for the plan by April 13, so that investors in the airline, which include Etihad Airways with a 49 percent stake and Italy's top two banks Intesa Sanpaolo and UniCredit could launch a cash call on the following day. But the unions, whose support for the plan is crucial for shareholders to unlock fresh financing, said they were unwilling to accept any further sacrifices. Despite several overhauls and cash injections over the years, Alitalia is losing at least half a million euros a day and could run out of cash in coming weeks unless shareholders agree to pump in more money. I see a Sabena scenario looming...
More:
http://finance.yahoo.com/news/last-ditc ... 07010.html
Re: Alitalia near bankruptcy. Will it be saved by Etihad?
Italy's Alitalia, unions agree preliminary deal in last-ditch talks
Alitalia and labour unions reached a preliminary agreement on Friday on job and pay cuts that the loss-making airline says are necessary to keep it in business. The tentative deal, needed to unlock fresh financing for the ailing Italian carrier, will however have to be approved by Alitalia workers in a ballot to become valid.
After marathon talks on Thursday night, the company and unions agreed to trim the scale of lay-offs among ground staff to around 1,700 from 2,037 previously envisaged, and reduce cuts to flight personnel wages to 8 percent from up to 30 percent.
The workers' ballot could possibly be held as early as next week.
"If the accord reached is approved by the workers, I imagine the shareholders will put the money in as planned," Industry minister Carlo Calenda told Radio 24 on Friday.
The financing package for Alitalia is worth 2 billion euros, including an emergency cash injection of 400 million euros to keep it afloat if the rescue plan does not work out as expected.
The 400 million euro financing is set to be split in half between Etihad and the banks.
More: http://www.reuters.com/article/alitalia-idUSL8N1HM0C4
André
ex Sabena #26567
ex Sabena #26567