Alitalia

Created in 1947, Alitalia (complete name: Alitalia-Linee Ventilated Italiane S.p.A. ) (Code AITA: AZ ; Code ICAO: AZA ) is the national Airline company Italy, in the process of privatization. Since July 2001, it belongs to alliance SkyTeam (like Air France - KLM, Aeroflot, Delta Air Lines, Korean Air, AeroMexico, Continental Airlines, Northwest Airlines or SCUMS Czech Airlines) and is also member of SkyTeam Cargo. Its turnover rises with more than 5 billion Euro S. Its fleet includes/understands 180 apparatuses approximately and the manpower is of 22.000 employees approximately. It transports more than 24 million passengers per annum.

Creation and development

If the name of the company can go up with that of the Società Area Avio-Linee Italiane ( ALI ) created in the the Twenties of the 20th century, under the impulse of FIAT, the current society were created only after the Second world war, with the support of Trans World Airlines (TWA) and of British European Airways (BEA) which financed the two principal Italian companies created in 1947, with planes FIAT G-12 rented with the Italian air force:

Aerolinee Italiane Internazionali (ALI or Alitalia) - BEA brings 30% of the capital -
and Linee Aeree Italiane (LAY) - which ended up amalgamating in September 1957.

After this fusion in 1957, Alitalia became the national airline company. In 1960, it adopted the first jet S, by operating the Douglas DC-8 and the Caravelle, a French plane. The company exceeded the million passengers per annum the same year. It moved away from its British investors in the the Sixties to become a company entirely with Italian capital at the end of the decade. At this time, it had become the 3rd larger company in Europe (in passagers/km transported). But the international deregulation of the the Seventies was hard enough for the company. It missed its various attempts by diversification in tourism or through smaller companies and was obliged to reduce its operations drastiquement. As from 1996, it was limited to the only service air passengers. November 1st 1996, its subsidiary company Avianova was baptized Alitalia TEAM , a Airline company at low cost having 9 ATR-42, 4 ATR-72, 5 Fokker 70,1 Boeing 767, 14 Airbus A321 and 7 MD-82 (these last three types of planes being lent by the head office). Then in 1997, it created Alitalia Express , a regional company at low cost. Alitalia TEAM S.p.A. ended up being absorptive with Alitalia S.p.A. whereas Alitalia Express S.p.A. remains as a company but without having an important autonomy of image.

Economic difficulties and privatization

After a marriage fallen through with KLM in 2001 (strong inflicted penalty with KLM, poured in Alitalia), Alitalia entered a downward spiral, worsened by the reduction of the market after the September 11th 2001, with for a 2003 negative operating margin, equal to -9,4% of the turnover. The crisis is accentuated in 2006, with first half of the year catastrophic, with for consequence a loss of 10% of its stock exchange security in one day on September 13rd, 2006. The company suffers from a too small size, bursting of its activities on two principal platforms ( hub S ), Milan - Malpensa and Rome - Fiumicino, and of the offset situation of Italy for the transatlantic lines. It moreover is attacked hard by the companies at low cost - with international, such Ryanair which ensures 13% of the international connections of and towards Italy (against 20% for Alitalia) and on the national market, by companies like Meridiana or Air One, where its market share does not exceed 50%. Fusion, a time projected, with the couple Air France - KLM was deferred sine die .

To rectify this public company in great economic difficulty since 2003, the Italian government initially indicated in May 2004 Giancarlo Cimoli, previously president of the Ferrovie dello Stato (railroads), as president and managing director (who held this station until February 2007). More than 5.000 dismissals were planned to avoid the bankruptcy of the company (figure then reduced to 3.500 only after agreement with the trade unions at the end of September 2004). Massimo Chieli, the director of human resources, detailed the revival program, by specifying that the airline company would be divided into two companies: Alitalia Fly (11 700 employees) for transport itself, and Alitalia Service (9 000 employees) for the activities on the ground. It is starting from this scission that would be practiced, between 2005 and 2006, degreasing concerning a quarter of manpower: 1.570 suppressions of employment for Alitalia Fly , including 450 pilots and 1.050 personnel commercial flying personnel (PNC: hostesses and stewards) and 3.430 at Alitalia Service . A good part of the activities of this last subsidiary company should be externalized. The objective is to save each year approximately 315 million euros on the wage bill and to bring closer the costs to exploitation of Alitalia of those of the equivalent European companies.

A capital growth to rectify finances of the company proceeded November 14th with the December 2nd 2005, according to the provisional results communicated by Monte Titoli S.p.A., the subscribed shares account for 1.250.160 756 on a total of 1.257.562 072 shares suggested, for a full value of 1.000.128 604,80 euros (99,4% of the offer).

The company was placed in a procedure of privatization (it still belongs to the Italian Treasury) at the end of 2006. 11 potential rescuers were made known following the invitation to tender. A new board of directors was trained by the ministry for the Economy, with like new president Berardino Libonati. “ In reference to the Ventilated assembly of the shareholders of Alitalia Linee Italiane SpA, convened February 22nd and 28th 2007, the ministry for the Economy states that it will lodge with the seat of the company, the following list: 1. Berardino Libonati (president); 2. Aristide Police; 3. Giovanni Sabatini; 4. Carlo Santini; 5. Luciano Vannozzi ”. It would be the minister himself, Tommaso Padoa-Schioppa, to have request with Berardino Libonati to become new president d' Alitalia.

February 13rd, the Italian Treasury announces that only 5 candidates (out of 11) are invited to specify their offer for mid-April as regards privatization. These companies are:

AP Holding of Carlo Louse, owner of Air One;
M&C Management & Capitali Spa - Cerberus European Investments LLC - ELQ Investors Ltd - Lefinalc Spa (this last with the head Alcide Leali);
Total MatlinPatterson Advisers LLC;
Europe LP;
Unicredit Banca Mobiliare Spa.

February 14th, 2007, the Italian Minister for the Economy announces that this second phase will last 9 or 10 weeks and will finish mid-April with the evaluation of the preliminary offers. The contract of privatization should be concluded for mid-June. The economic best offer will not be “ the first element of evaluation” in order to chosir the purchaser. It specifies that the Italian State buys to some extent an industrial sphere with its qualities. The minister pointed out that Alitalia accumulated losses between 1996 and 2006 equal to 3,2 billion while the shareholders poured 4,5 billion euros. The Treasury does not exclude to preserve a quota but the Italian State will yield the control of the company well.

The Russian airline company Aeroflot expressed in April 2007 its wish to become joint owner of Alitalia: this new was made public by Unicredit, one of the independent groups financial of Europe equipped with 1.000 billion dollars credits and associated Russian airline company in the project. The managing director of Aeroflot, Valeri Okoulov, declared that a third partner could join the Aeroflot-Unicredit tandem. The Russian company and Unicredit were withdrawn from the race on June 27th, 2007, for lack of reliable information.

Remained from now on in race only the group made up of Carlo Toto (Air One) - Intesa San Paolo, on the one hand, and of American MatlinPaterson on the other hand; which one still does not know the air partner. Carlo Toto announced 2.350 additional dismissals from here 2012. But both refuse the conditions of the Italian government in turn and the procedure of privatization is abandoned before the term envisaged of July 23rd, 2007.

At July 19th, 2007, the Italian government threatens to put Alitalia in compulsory liquidation if there is no transferee before July 23rd, 2007. Actullement all the transferees withdrew themselves, but on July 25th, Carlo Toto is declared ready with an agreement private which would be more advantageous and would allow the resumption of the company by Air One.

Evolutions and alliances with Air France

Following a Franco-Italian government seminar of January 2005, the resumption of alliance between the group Air France and Alitalia was confirmed by the two governments.

“ Alitalia has its problems to solve and will solve we them ”, declared Silvio Berlusconi, and then one will move towards the integration to create a single Franco-Italian company, remarks confirmed by Jean-Pierre Raffarin. Blow the actions of Alitalia flew away. The managing director, Giancarlo Cimoli confirmed these remarks in margin of the top: “ once the company will have a more positive situation from a countable point of view, it will be worth more and it will go towards alliance with KLM and Air France ”.

Alitalia and Air France are already bound by a trade agreement of 2001, reinforced by an exchange of actions of 2% (2003) which lays out the presence of the two presidents in the respective boards of directors. But fusion had been deferred whereas that with KLM was made in September 2004. This trade agreement in particular envisages to develop a system multi hub, based on the Aéroport Roissy-Charles-of-Gaulle, Aéroport of Milan Malpensa, Aéroport of Rome Fiumicino and the development of the Partage of code in Europe and in the intercontinental flights.

For the flights between Italy and France, the companies operate in full joint-venture (i.e. like a single company). There are currently 582 weekly flights of which 30,6% are ensured by Alitalia, but Cimoli recently wished that this division of the flights be balanced better.

In November 2005, Air France announced that it would take part in the capital growth envisaged in December in order not to dilute its participation of 2% which it wishes to maintain.

At the end of 2006, at the beginning of 2007, with the announced privatization of the company by the Italian government, the chairman of Air France resigns of the board of directors of Alitalia and Cimoli makes in the same way for Air France, in order not to be a judge and part. Eleven transferees are announced, of which the group Toto (Air One). A fusion between Air France - KLM and Alitalia are had a presentiment of. The Italian government launches the invitation to tender procedure for this privatization. And in January 2007, finally, Air France gives up taking part in this invitation to tender and fusion is not any more with the day order. The cooperation agreements of 2001 and 2003 remain in force.

History

May 5th 1947, the first flight of the company is carried out on a FIAT G.12 which bears the name of Alcione and which takes off of Turin for Rome then joined Catane in Sicily. July 6th of the same year, the first international flight is a Rome - Oslo. The following year, in March, a Lancastrian inaugurates the first intercontinental flight, on the road Milan, Rome, Dakar, Natal, Rio de Janeiro, Sao Paulo, Buenos Aires in 35 hours of vol.

Float

The fleet of the Alitalia Group, at September 23rd 2004, included/understood 193 aircraft, including 23 long-distance carriers and 170 courts and middle-distance carriers. In 2005, it held nothing any more but 184 apparatuses including 129 which belongs to him into clean. It includes/understands in particular Boeing 777 and 767, McDonnell Douglas MD-80, Airbus 319,320 and 321, Embraer and ATR. At the end of 2005, it seems forced to mortgage its 129 planes in order to obtain a credit line near an American financial institution.

10 Boeing 777 -200
13 Boeing 767 -300
5 MD-11 (Alitalia Cargo liner)

23 Airbus A321 -100
11 Airbus A320 -200
12 Airbus A319 -100
76 McDonnell Douglas MD-80 MD-80 (they are MD-82)
10 ATR 72
14 Embraer 145
6 Embraer 170

In homage to the two pilots killed during a trial flight to Toulouse on June 30th, 1994 (to see here), two Boeing 767 Alitalia have the names of Alberto Nassetti and Pier Paolo Racchetti .

Statistical data

( 2002 )

Passenger traffic transported momentary

: 22,205 million
passenger-km: 30,02 billion
average occupancy rate: 70,8%

Traffic freight and mail

tkm: 1,378 billion
rate filling: 67,1%

Given financial (million euros)

turnover: 4.748 (- 10% compared to 2001) - this CA exceeds 5.000.000 000 € in 2004.
operational result: -118,5
result before exceptional elements and taxes: -260,5
result (benefit): 93,1
investments: 1.101

Great stops of the Council of State

February 3rd 1989 - Company Alitalia - p. Rec. Lebon 44
Analyzes: By the decision Company Alitalia , the Council of State institutes faculty for all Administré to require, without condition of time, with the administration to repeal the lawful acts illegal right from the start or become illegal because of a change in the circumstances in fact or right.

The request of the Alitalia company related to refundings of VAT which had been refused to him by the Administration on the base of provisions resulting from appendix II with the general Code of the taxes. The Alitalia company estimated that these regulations were contrary with the sixth directive of the Council of the European Communities relating to the harmonization of the legislations of the Member States as regards VAT of May 17th, 1977. The company had thus seized the administrative Juge of the cancellation of the decision by which the administration had refused to repeal the provisions of the appendix II object of the litigation.

Group

With the November 10th 2004 was created company ALITALIA Servizi S.p.A., subsidiary company with 100% of Alitalia. This creation is the first concrete action of the new organization of the group to reach its industrial sphere 2005-2008.

ALITALIA S.p.A. EXPRESS TRAIN (subsidiary to 100%): airline company. ( Alitalia TEAM was amalgamated with Alitalia in 2002). Authorized capital: 23.400.000 €.

ATITECH S.p.A. (subsidiary company with 100%): handling and repair. Authorized capital: 32.039 941,56 €.

ALITALIA AIRPORT S.p.A. (subsidiary to 51%): assistance on the ground.

Authorized capital: 7.650.000 € of which versed 3/10e.

GA 2000 Travels Service Ltd (100%): sale of tickets and services related.

Total Executive Travel Selections Inc. (subsidiary company with 100%): sale of tickets and services related.

AVIOFIN S.p.A. (subsidiary company with 100%): purchase and management in air transport. 516.460 €.

ALINSURANCE S.r.L. (Aviofin S.p.A. 88%, ALITALIA 6%, Aeroporti di Roma S.p.A. 6%): insurances. 104.000 €.

ALITALIA MAINTENANCE SYSTEMS S.p.A. (Azionisti: ALITALIA 60%, Lufthansa Technik A.G. 40%): handling, revision and repair. 10.120.000 €.

SISAM - Società Italiana Servizi Aerei Mediterranei S.p.A. (in liquidation): services. 1.548.000 €.

ALITALIA Servizi S.p.A. (subsidiary in 51%, Fintecna 49%): this company must carry on all the activities of support and assistance to the airline companies. 120 000,00 €.

VOLARE GROUP (Volare Airlines and Air Europe): subsidiary company with 100%)

See too

List of the Italian large companies | Airline company | List of the European airline companies

External bonds

Official site Alitalia
Official site Alitalia France
Site of Boeing - History

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