Alitalia Has Been Saved By The Government

Alitalia, the Italian carrier that has been struggling for years, will be renationalized by the Italian government.


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For a while, the airline has been looking for a buyer but has been unable to find one. Now, Prime Minister Giuseppe Conte’s has decided to have Italy’s Ministry of Economy and Finance form a new state-owned business to keep Alitalia operational.

This decision comes from the Italian government announcing numerous ways to aid businesses during this crisis, one of them being Italy’s aviation industry.

The Italian government announced a €600 million aid fund for the aviation sector of Italy’s economy, with most of it going to aid Alitalia.

Sources/Images

Alitalia 777-300ER: https://www.jetphotos.com/photo/9104729
Sources:
https://www.arabnews.com/node/1642616/business-economy
https://www.aviation24.be/airlines/alitalia/alitalia-to-be-re-nationalised/

In order words, it sounds like they’ve been bailed out by the government. It seems like Alitalia will survive this crisis.

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Lucky them! Glad to see some good news in the wake of the virus.

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It’s been a while, and it’s sweet…

Thank goodness, I’m glad that an airline we don’t have to say goodbye to.

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Atleast 1 Italian airline has been saved. However I would prefer to have Air Italy saved. Hopefully the government of all countries are able to help their struggling Airlines!

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Didn’t the Italian government avoid backing up Air Italy because they had foreign investment?

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Finally not a bad story for once. I though that Alitatlia would have been domed by the virus I guess not!

Not sure of the entire reason, but I know that the Italian government “awarded” Alitalia the tender for PSO routes. Air Italy had already been operating them for a while, but decided they couldn’t risk the 500 staff in Sardinia, so they continued operating routes that lost them a lot of money. This was because of the 49% stake Qatar Airways had in it though, so I guess in a way they did but it could also be blamed on some bad decisions that may have led to the demise of the airline.

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Glad the government is helping these airlines. It is really needed

Wow that’s a lucky lucky lucky airline right there…

Not yet I don’t believe. There’s a lot to a government takeover - about transitioning the airline’s operations and finances. This is only proposed and raised with more urgency considering the situation. Italy is just too proud… Alitalia should be long gone if they took notice of their revenues 😂

hmm

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Some more updates on this:

“The new Alitalia will start with a fleet of more than 90 aircraft compared with its current 113 airplanes,” Patuanelli said, denying reports the fleet could be cut to 30 planes.

Among the many unknowns there is that of international alliances: Alitalia must decide whether to stay in SkyTeam and confirm the agreement with Delta Air Lines and Air France-Klm, or change jacket and land in Star Alliance and Lufthansa sphere of influence

Basically Alitalia’s codeshare and joint venture with Delta/Air France/KLM expires next month, and they must decide whether to stay in SkyTeam or potentially leave. The Italian source states Star Alliance could be considered.

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For now, are they still continuing to plan to fly to San Francisco? (Although this may be delayed because of corona)

As an Italian I am happy to see Alitalia will not disappear but then again nobody in Italy really thinks it ever would (despite the billions wasted over decades of mismanagement, it has always found a way to continue flying as you all know)

In recent years the majority of the Italian population has been mostly against another government intervention (which have occurred previously). Low-cost airlines overtook the largest portion of the market share in Italy years ago, and thus many people lost this feeling of “loyalty” that I feel was much more widespread…a long time ago.

I personally have always loved the Alitalia brand (despite their hiccups!) and I’m very happy to see they will continue to fly. But I think it would be a mistake to switch alliances. I think SkyTeam is a good fit for Alitalia.

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It’s still bookable for its inaugural on June 1.

They even have an advertisement for it lol

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Very interesting. I would love to see Alitalia in the Star Alliance, but that wouldn’t make sense economically in my opinion as the presence of StarbAlliance in Europe is very good and they probably would only compete with each other in the end.

It would be great for customers to be able to even further explore Italy with the Star Alliance though.

Thanks @Ishrion and also thanks to @AliAlex for the Italian point of view on the story!

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Also the prices to SFO in the picture are just ridiculously high in my opinion.

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