Alitalia receives a new cash injection
Reuters reports that the Italian government injecting another three billion euros of capital in Alitalia, like there are plans for the nationalization of the airline. This is according to the Italian Minister of Industry, Stefano Patuanelli. This comes after an announcement in mid-March that Alitalia would get 600 million euros in financing.
We know the plan is launch a “new” Alitalia in June 2020Although it seems more and more that the new Alitalia will look a lot like the old one, except perhaps a little smaller.
Alitalia dismisses more than 6,600 workers
About half of the employees are flight attendants (pilots and flight attendants), while the other half are employees on the ground. With this arrangement, employees will receive up to 70% of their wages during the period without working.
This represents about half of Alitalia’s employees and given the slow anticipated recovery this seems to make sense.
Alitalia will focus on partnerships and long haul
Italy’s Industry Minister revealed two more points when discussing the “new” Alitalia:
- The airline will focus heavily on long-haul routes.
- The airline will focus on a new transatlantic alliance
That last point is especially interesting. Alitalia was recently expelled from the SkyTeam transatlantic joint venture: a joint venture between Air France-KLM, Delta and Alitalia, changed to a new joint venture between Air France-KLM, Delta and Virgin Atlantic.
There has been talk of Alitalia leaving SkyTeam and joining another alliance, although one has to wonder what exactly that would look like:
- Is there room in the oneworld transatlantic joint venture, which currently includes American, British Airways, Finnair and Iberia?
- Is there room in the Star Alliance transatlantic joint venture, which currently includes Air Canada, Lufthansa Group airlines, and United?
Both scenarios do not seem particularly likely to me, especially in light of current circumstances, and especially without a capital investment from a participating airline (which seems practically impossible at the moment, given the circumstances).
What else could Alitalia be considering that I’m not thinking about?
Alitalia is getting a massive cash injection from the Italian government, and it will also leave about half of the employees until October.
What intrigues me the most is Alitalia’s plan for transatlantic partnerships. What exactly could we see them chasing outside of SkyTeam?
What do you think of these Alitalia developments?