Alitalia saved by the Government and reborn as ITA

Join this forum to discuss the latest news that happened in the world of commercial aviation.

Moderator: Latest news team

Post Reply
User avatar
sn26567
Posts: 38915
Joined: 13 Feb 2003, 00:00
Location: Rosières/Rozieren, Belgium
Contact:

Re: Alitalia saved by the Government and reborn as ITA

Post by sn26567 »

ITA – Italia Trasporti Aereo signs an agreement to keep the Alitalia brand for now, ahead of its imminent launch date and the end of the current Alitalia.

The last flight of Alitalia before the doors close: https://www.aviation24.be/airlines/alit ... initively/
André
ex Sabena #26567

User avatar
sn26567
Posts: 38915
Joined: 13 Feb 2003, 00:00
Location: Rosières/Rozieren, Belgium
Contact:

Re: Alitalia saved by the Government and reborn as ITA

Post by sn26567 »

Hereunder are a few posts that I erased by mistake:

Post by sn26567 » Mon 30 Aug 2021 18:46:21

ITA – Italia Trasporto Aereo applies for an exemption under a foreign air carrier permit to enable ITA to provide scheduled and charter foreign air transportation to the US. ITA’s initial plans include service between Milan and New York, on the one hand, and between Rome and Boston, New York, and Miami, on the other hand. In 2022 ITA plans to add additional destinations from Rome including Washington, DC and Los Angeles, and in 2023, Chicago and San Francisco.

by sn26567 » Thu 09 Sep 2021 15:04:18

The Italian Government is set to be told that a €900m loan to Alitalia in 2017 breached EU state-aid rules.
The decision spells the latest ignominious chapter for Alitalia, Italy's perennially loss-making flag carrier for 75 years.

https://www.ft.com/content/e1c1542f-7dd ... 31b103df57

What now? The company is unable to reimburse anyway and ITA will be economically independent and will not be liable for any illegal state aid received by Alitalia in recent years...

by sn26567 » Thu 09 Sep 2021 18:00:37

ITA – Italia Trasporto Aereo and the unions failed to secure a new employment contract, as the conditions for an agreement are not in place.

A strike in view even before the start of the operations?

by sn26567 » Thu 09 Sep 2021 18:00:37

ITA – Italia Trasporto Aereo and the unions failed to secure a new employment contract, as the conditions for an agreement are not in place.

A strike in view even before the start of the operations?

by sn26567 » Fri 10 Sep 2021 12:32:50

Two important decisions from the European Commission today:

1. The European Commission has found that Italia Trasporto Aereo S.p.A. (“ITA”) is not the economic successor of Alitalia and, hence, it is not liable to repay illegal State aid received by Alitalia. It also found that Italy’s capital injections of €1.35 billion into the new company are in line with market conditions, and therefore do not amount to State aid under EU rules.

https://www.aviation24.be/airlines/ita- ... t-conform/

2. The European Commission has concluded that two State loans for an amount of €900 million, granted by Italy to Alitalia in 2017, are illegal under EU State aid rules. Italy must therefore recover the illegal State aid, plus interest, from Alitalia.

https://www.aviation24.be/airlines/alit ... legal-aid/

I wonder how the bankrupt Alitalia will reimburse 900 million euros (+ interest) to Italy...

by sn26567 » Fri 10 Sep 2021 12:40:23

Some important explanations:

Statement by Executive Vice-President Vestager on the Commission decisions concerning €900 million State aid granted by Italy to Alitalia and Italy's capital injection of €1.35 billion into Italia Trasporto Aereo (ITA)


Today, the Commission has taken two decisions concerning the aviation sector in Italy.

In the first, we have found that two loans that Italy granted to Alitalia in 2017, for a total of 900 million euros, are illegal under State aid rules. Italy must now recover this amount from Alitalia.

In the second decision, the Commission has reached two important conclusions:

First, we have found that the new state-owned airline, called Italia Trasporto Aereo – or ITA, is not the economic successor of Alitalia and is therefore not liable to repay the illegal State aid received by Alitalia.
Second, the Commission has found that Italy's capital injections of 1.35 billion euros into ITA are in line with market conditions, and therefore do not amount to State aid.

Both decisions are important to help restore a level playing field in the European aviation sector, while ensuring air connectivity in Italy and protecting consumer rights. This is especially important in an industry that has been hard hit by the coronavirus pandemic.

The negative decision on Alitalia

Let me now go through the details, starting with the decision concerning Alitalia.

Alitalia's financial difficulties go back a long time. There have already been a number of attempts to restructure the airline. Since 2008, when a group of private investors purchased a controlling stake, the company has made losses every year.

In 2017, Alitalia was in urgent need of liquidity. However, it had lost access to credit markets due to its financial situation. So Italy gave two state loans to the company worth 900 million euros. At the same time, Alitalia was placed into special bankruptcy proceedings.

In 2018, the Commission opened a formal State aid investigation, following a notification from Italy of the two loans as rescue aid for Alitalia. We also received a number of complaints from other airlines concerned about the impact on fair competition.

Alitalia's financial position remained unsustainable, and at the end of 2019 the company was again in urgent need of cash. This is when Italy granted the airline another loan worth 400 million euros. Also in this case, the Commission received a number of complaints and opened a second formal investigation in early 2020. This investigation is ongoing, and we expect to be able to adopt a final decision soon.

With respect to the 900 million euros loans, the in-depth investigation has shown that first, the loans amount to State aid for Alitalia, and second that they are illegal under State aid rules.

First, we found that, when Italy granted these loans, it did not act as a private investor. It did not make a prior assessment of how likely it would be that the loans would be repaid by Alitalia, with interest. Our assessment of Alitalia's financial situation in early 2017 showed that repayment was very unlikely – and, as a matter of fact, the loans have not been repaid to this day. Since no private lender would have granted the loans to Alitalia at the time, they amount to State aid in favour of the company.

Second, the loans could not be approved as rescue aid in line with State aid rules for companies in difficulty. That's because the loans were not reimbursed within six months, and there was no restructuring plan to return the company to viability nor a liquidation of the company.

Our conclusion is therefore that the two loans gave Alitalia an unfair advantage over its competitors on national, European and world routes. Hence, they constitute illegal State aid, and must now be recovered by Italy from Alitalia.

Economic discontinuity between Alitalia and ITA

I now turn to the second decision we have adopted today.

In 2020, Italy established a new air carrier ITA. ITA plans to take over parts of Alitalia's business.

Under our rules, a new company is not liable for past aid received by the seller, if the two companies are sufficiently different from one another. In other words, if there is a clear break between them, so-called “economic discontinuity”.

Our second decision concludes that there is economic discontinuity between ITA and Alitalia. This means that ITA will not be liable for the 900 million euros that Alitalia has to repay following today's decision.

In line with established case law, this is based on a global assessment looking at a number of different factors:

First, looking at the aviation assets transferred, ITA will take off with a significantly reduced perimeter of activities. It will operate less than half of Alitalia's aircraft, fly to fewer destinations and drop a number of loss making routes.

ITA will also only use a limited number of Alitalia's take-off and landing slots that corresponds to the number of aircraft that it will operate. The other slots previously used by Alitalia, including at congested airports in Rome and Milan, will be released.

Second, ITA will not take over significant parts of Alitalia's non-aviation businesses: Alitalia's ground handling and maintenance businesses will be sold in open and competitive tenders. In these tenders, ITA will only have the opportunity to bid for the ground handling business in Rome Fiumicino Airport, and for a minority stake in the maintenance business.

Third, Alitalia's brand will also be sold in an open and competitive tender to the highest bidder.

Fourth, ITA will have a more sustainable cost structure, especially in terms of labour and fleet costs. It will hire a significantly reduced number of staff from the market, including from Alitalia, but under new labour contracts, based on market conditions. It will also gradually modernise its fleet with new-generation fuel-efficient aircraft.

Finally, in order to be sure that there is no direct transfer of customers from Alitalia to ITA, ITA will not bid for Alitalia's loyalty programme.

ITA will therefore be a different company from Alitalia. It will take off as a streamlined airline. This is crucial for the long-term viability of ITA.

The launch of ITA

As part of the second decision adopted today, we have also assessed capital injections worth 1.35 billion euros that Italy intends to grant to ITA. These will be injected over the next three years, with an initial 700 million euros this year.

State aid rules are neutral on public versus private interventions. That's why the State can invest in companies, on terms that a private operator would also have accepted, without it being State aid.

Our assessment of ITA's business plan has shown that Italy is investing in ITA in line with market conditions. This is also confirmed by three independent expert reports submitted by Italy.

And this is a crucial difference compared to the two loans in favour of Alitalia, on which we have adopted a negative decision today.

The business plan foresees that ITA will be a viable airline, with sustainable costs and staffing, flying to a limited number of destinations with a focus on the profitable routes. Moreover, the business plan assumes future cost reductions stemming from the modernisation of ITA's fleet, which will result in lower maintenance and fuel costs.

On this basis, the expected returns from Italy's investment in ITA are estimated to be higher than the cost of equity. We therefore concluded that the Italian intervention in ITA does not constitute State aid under EU rules.

Conclusion

Today marks a fresh start for Italy's air transport, which had to overcome many challenges. I want to stress one point that was important to us, the interests of passengers: Italy will fully refund Alitalia customers, in case Alitalia fails to honour tickets when it stops flying.

Once ITA takes off, it is for Italy and the management of ITA to make use of this opportunity, once and for all. To establish an airline that is viable, operates on an equal footing with its competitors, lives up to sustainability ambitions, and that will be successful for a long time to come.

The right groundwork has been laid. And we will continue to do our part to ensure fair competition in the European aviation sector.

Thank you.

by sn26567 » Tue 14 Sep 2021 16:45:51

ITA – Italia Trasporto Aereo will not have slots at London Heathrow airport, as Etihad, the former majority shareholder of Alitalia, has taken back the five slots.

by sn26567 » Fri 17 Sep 2021 21:08:52

Alitalia auditors launched the tender for the sale of the Italian airline brand, in bankruptcy since 2017, for a base price of €300 million.

Expensive for a brand associated with Always Late In Takeoff, Always Late In Arrival!

by sn26567 » Fri 17 Sep 2021 21:08:52

Is this a joke? Is this a soap?

"Weeks before planned take-off, ITA could delay its start, extending Alitalia’s life until March"

https://www.aviacionline.com/2021/09/we ... til-march/

Italia Trasporto Aereo, the Italian state’s new airline venture, might start operation later than the originally planned date (October 15th), the day that’s already in the booking system and from which the airline is selling tickets. This is what four internal sources told aviation reporter Leonard Berberi of Corriere della Sera, the country’s most important newspaper.

The measure, described by the sources as «extreme», would ultimately extend the life of Alitalia until the newly defined starting date of the airline, which would be in March 2022, according to the periodical.

by luchtzak » Tue 28 Sep 2021 15:42:20

An amazing story ....

by sn26567 » Fri 01 Oct 2021 12:39:31

Airbus will equip the fleet of Italia Trasporto Aereo (ITA), with the Italian flag carrier agreeing to buy 28 aircraft and lease others.

ITA will buy 10 A330neo, 7 A220s and 11 A320neo-family aircraft. Deliveries will begin in the first quarter of 2022.

ITA has also signed an agreement with Air Lease Corporation to lease 31 Airbus aircraft of various types and will lease a total of 56 Airbus planes over the course of the business plan.

https://www.aviation24.be/airlines/ita- ... air-lease/

by ticketbuyer » Mon 04 Oct 2021 22:40:22

The first round of the auction for the brand Alitalia, with a minimum price of 290 million Euros, passed today without any offers. The next round, with a minimum price of 10 million Euros, will be announced soon.
Alitalia employees have been paid half their wages, the rest depends how much the brand is sold for.

by sn26567 » Fri 08 Oct 2021 22:41:45

ITA – Italia Trasporti Aereo to launch direct services from Rome to New York JFK, Miami, Boston and Los Angeles starting from 04 November 2021 with A330, as well as from Milan to JFK. Some of the routes will begin in 2022.

by ticketbuyer » Wed 13 Oct 2021 09:39:58

From 15 October Volotea will operate the PSO flights from Alghero, Cagliari and Olbia to Milan Linate and Rome Fiumicino. The services will be carried out until May 2022.
The airline offered lower prices than those proposed by ITA - Italy Air Transport.
The airline will have a Sardinian fleet of seven aircraft. A third one will be based in Cagliari, a second at Olbia and two will be in a new base at Alghero. Volotea will be recruiting internal Commanders and First Officers from 21 October. 65 Block hours per month for the Cagliari base and 50 for those of Alghero and Olbia.
André
ex Sabena #26567

User avatar
luchtzak
Posts: 11584
Joined: 18 Sep 2002, 00:00
Location: Hofstade, Zemst - Belgium
Contact:

Re: Alitalia saved by the Government and reborn as ITA

Post by luchtzak »

To become Alitalia all over again as ITA bought the Alitalia brand for €90 million 🤨

Why didn’t we come up with thuis great idea 🤷‍♂️

User avatar
sn26567
Posts: 38915
Joined: 13 Feb 2003, 00:00
Location: Rosières/Rozieren, Belgium
Contact:

Re: Alitalia saved by the Government and reborn as ITA

Post by sn26567 »

luchtzak wrote: 14 Oct 2021, 22:59 To become Alitalia all over again as ITA bought the Alitalia brand for €90 million 🤨
It was already written this morning in my article (except the price) :)
https://www.aviation24.be/airlines/alit ... initively/
André
ex Sabena #26567

TLspotting
Posts: 2934
Joined: 19 Mar 2017, 10:22
Location: Uccle/Ukkel, BE
Contact:

Re: Alitalia saved by the Government and reborn as ITA

Post by TLspotting »

Hi. I'm Thibault Lapers. @ThibaultLapers & @TLspotting

User avatar
sn26567
Posts: 38915
Joined: 13 Feb 2003, 00:00
Location: Rosières/Rozieren, Belgium
Contact:

Re: Alitalia saved by the Government and reborn as ITA

Post by sn26567 »

ITA – Italia Trasporto Aereo is positioning itself for an investment from a major airline that could come as soon as the end of 2022.
André
ex Sabena #26567

User avatar
sn26567
Posts: 38915
Joined: 13 Feb 2003, 00:00
Location: Rosières/Rozieren, Belgium
Contact:

Re: Alitalia saved by the Government and reborn as ITA

Post by sn26567 »

Voyager Aviation Holdings (a US lessor) has closed a transaction with ITA – Italia Trasporto Aereo for the lease of two A330-200s. The aircraft are part of ITA’s initial fleet that commenced operations on 15 October 2021.
André
ex Sabena #26567

User avatar
sn26567
Posts: 38915
Joined: 13 Feb 2003, 00:00
Location: Rosières/Rozieren, Belgium
Contact:

Re: Alitalia saved by the Government and reborn as ITA

Post by sn26567 »

André
ex Sabena #26567

Post Reply