Opinion | Alitalia's Business Plan Just Doesn't Work

Overview:
In case you’ve been living under a rock, recent events in the world have wreaked absolute havoc on airlines who already have pre-existing financial issues. This is especially the case with Italy’s flag carrier Alitalia.


Alitalia parked at LAX

Well, what’s wrong?
Alitalia, which let me begin with, has NOT made a single profit since 2017 due to Etihad cutting off their partnership that was basically acted as a very thin string to hang onto for the airline. This, combined with their absolutely oversized fleet has caused them to lose 3 million Euros a day.

Who’s helping them?
Investments by the Italian government have only angered Italian taxpayers, which is understandable due to the fact that they have poured a little over 7 billion Euros into the sinking airline. Since about mid-march, Alitalia is now completely nationalized by the Italian government as a last resort for the doomed airline.

What’s gonna happen now?
Now, in recent news, Alitalia is moving forward with its plan to create a so-called new Alitalia. Which calls for the decrease in their fleet from 114 to about 90 aircraft. They also plan to shrink a lot of their routes and reduce the amount of international daily flights.

What’s their future?
In my opinion, even with their expensive efforts, I just don’t see Alitalia surviving as an airline in the long term. Especially since other airlines like Lufthansa are waiting for them to shut down so they can have their piece of the pie and create a hub in Italy; in particular Rome. Now, believe me, I am a big fan of Alitalia and am not excited for the airline for their basically inevitable shutdown. May that be in this coming year or the next few years. It all comes down to this, it just doesn’t seem feasible.

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Hmm, very interesting! Thanks for the post! 😁

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Thank you for reading :)!

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