By continuing to use the site, you agree to the use of cookies. You can find out more by following this link.  OK  Find out more

 
Latest Aviation News Air transport ATLANTIA, DELTA PICKED TO REBOOT AILING ALITALIA

Atlantia, Delta picked to reboot ailing Alitalia

AFP
16/07/2019 | 489 words

Italy's state railway Ferrovie dello Stato (FS) on Monday said it had chosen the Atlantia transport group and US airline Delta as partners to reboot the ailing carrier Alitalia.

The economy ministry is to be the fourth main investor in Alitalia, which has struggled to compete with low-cost European rivals and was placed in administration in 2017.

"The Board of Directors of Ferrovie dello Stato Italiane... today identified Atlantia as the partner to work alongside Delta Air Lines and the Ministry of Economy and Finance on the Alitalia operation," FS said in a statement.

It said it would start on a business plan with the chosen partners "as soon as possible".

Atlantia is a major operator of toll expressways and airports, and is owned by the Benetton group that is best known for its clothing brand. The group has already injected money twice into the airline as it struggles with excessive debt.

FS had submitted a takeover offer for Alitalia in late October, but said it wanted solid partners to join it.

Delta and the Italian Treasury had been tipped for months, but a fourth partner was needed.

No details were given on how the company will be shared, but according to figures circulating in the media, FS and Atlantia could each take some 35 percent, while Delta and the ministry would take 15 percent each.

Italian Deputy Prime Minister Luigi Di Maio's anti-establishment Five Star Movement, which governs in a populist coalition, has been very critical of Atlantia, whose subsidiary Autostrade was in charge of maintaining a large suspension bridge that collapsed in Genoa last year.

The disaster killed more than 40 people.

"We have laid the foundations for the relaunch of Alitalia!" Di Maio said in a post on Facebook.

"The state will continue to hold an absolute majority in the company and therefore also control," he added.

Di Maio also emphasised that "nothing and nobody will erase the 43 dead on the Morandi Bridge".

Fellow deputy prime minister Matteo Salvini, head of the far-right League, had voiced support for Atlantia, which he described as "a serious industrial partner with a turnover of several tens of billions of euros".

But the road ahead is still long for Alitalia, which has some 11,000 employees.

The company loses one million euros a day ($1.1 million). Of the 900 million euro bridge loan granted to it in 2017 by the Italian government, only about 430 million euros remains.

The industrial plan for its recovery is forecast to result in several hundred job cuts, wage cuts and a reduced fleet.

The new company is expected to focus on boosting long-haul flights while cutting unprofitable routes.

cco/ide/klm

 
 
 
 
Related articles

EasyJet, two others in running for Alitalia: company

Ryanair says ready to make Alitalia bid if shake-up comes

Lufthansa says not interested in taking over Alitalia

Alitalia's future in doubt as staff grounds rescue plan

28/11 Airbus strengthens its dedicated services activity in the Middle East
28/11 The European Space Agency in the service of aviation MRO
28/11 Mubadala structures its Services activity
28/11 Donecle and Roboplanet look into non-destructive testing for military aircraft
28/11 Bolloré Logistics to assist CFM engine support in India
28/11 Dedienne Aerospace lands at Jebel Ali
02 DEC 2019
Prague-based AVIA PRIME Group will acquire a 99.38% stake in JAT TEHNIKA from the Serbian Government, becoming one of the key MRO players in Eastern Europe. AVIA PRIME already owns two MRO companies: Linetech S.A. (Poland) and Adria Tehnika (Slovenia), performing over 250 heavy maintenance checks in its facilities. With this new aquisition, AVIA PRIME will align 34 aircraft maintenance lines.
28 NOV 2019
KLM UK ENGINEERING has signed a long-term base maintenance contract with BA CITYFLYER. The AFI KLM E&M subsidiary will provide base maintenance support for the regional airline's Embraer fleet at its Norwich facility. BA CITYFLYER currently operate a fleet of 24 aircraft comprising 76-seat Embraer 170s and 98-seat Embraer 190SR' following recent fleet expansion.
27 NOV 2019
FIJI AIRWAYS has entrusted AFI KLM E&M with the component maintenance of its Airbus A350 fleet. The MRO company will provide repair, logistics and access to spare parts. The fleet will consist of two aircraft, the first of which has just been delivered.
25 NOV 2019
AEROSTRUCTURES MIDDLE-EAST SERVICES (AMES), the Dubai-based joint of AFI KLM E&M and Safran Nacelles, has been selected as a local partner for Preventive Maintenance Inspections (PMI) & associated repairs on GE90-110/-115B Fan Stator Modules (FSMs). The first of these FSMs has already been delivered mid-October 2019 and three others are currently being processed.
20 NOV 2019
TARMAC AEROSAVE announces that it has completed the first dismantling project for an AIRBUS A380. The work on the aircraft, which was part of Singapore Airlines' fleet, began a year ago. A second aircraft is being dismantled in Tarbes. The company also offers a storage service and is preparing to carry out a first intermediate maintenance check (B-Check) in March 2020.
ALERTAVIA, the News platform for Aerospace and Defense industry Professionals.

Featured Content
AFI KLM E&M steps up a gear on CFM's LEAP
Sabena technics finally gets back on-board C-130Hs
Airbus and Thai Airways to launch a new joint venture MRO facility at U-Tapao
How Thai Airways will Expand Rolls-Royce's Trent Engine Service Network
China embarks on board aircraft recycling
 
LATEST NEWS   CIVIL AEROSPACE   MRO & SUPPORT   AIR TRANSPORT   DEFENCE   SPACE
Follow us
© 2019 Le Journal de l'Aviation - All rights reserved