Alitalia Airlines After Bankruptcy
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Headquartered in Rome, the eternal city, Alitalia is the nineteenth largest airline in the world, with its main hub at Rome’s Leonardo da Vinci-Fiumicino Airport. Alitalia serves 66 international and 24 domestic destinations, its top 12 flights all originating from Rome. Alitalia offers a frequent flier program MileMiglia, qualifying fliers for all the benefits of the Sky Team Alliance. Members of MileMiglia can earn miles on flights on Alitalia or any of its thirteen Sky Team partners, including Air France, Delta, Northwest, Aeroflot, Korean Airlines, Czech Airlines, and more.
Alitalia Airlines was founded in’46. The airline?s inaugural flight was from Turin to Catania and Rome. The first international flight left a year later from Milan to South America. Its current fleet consists of primarily Airbus and Boeing aircraft. The airline has made some strategic changes recently in hopes of expanding its presence in the international market.
Like many other airlines, Alitalia has faced financial challenges almost continuously since its inception, with just one profitable year,’98. Its most serious financial issues were due to problems with labor issues and government interference. The Italian national government stopped subsidies in 2006, and the airline declared bankruptcy in 2008. The airline then became a private company when Air France-KLM acquired a 25 per cent stake in the airline from the Italian government.
The newly private Alitalia Airlines then merged with Air One under a partnered under a consortium called Compagnia Aerea Italiana (CAI), which finalized its purchase of the two airlines in December 2008. Air One has begun to operate a high-frequency network to 36 destinations throughout Europe and also in North America. Hubs for Air One are in Milan, Rome, and Turin.
Prime Minister Berlusconi had called for the formation of the consortium, which derives its investment capital from wealthy Italian entrepreneurs and banks. The consortium assumed Alitalia’s debts, which led to public questions as to how much the Alitalia sale was subsidized by taxpayers. The new company was formed with a capital of 1 billion euro, and promised a five-year plan to bring the new airline to profitability by 2010. Over 12,000 workers of the “old” Alitalia kept their jobs in the merger, but another 3,250 jobs were eliminated.
The new airline includes a partnership with Air France-KLM, with Air France taking a 25 percent minority stake in Alitalia Airlines. Alitalia officials hope this partnership will help Alitalia reach its goal of profitability as well as expand its presence in the international market. The new partnership and the merger with Air One also means expanded mileage and flight opportunities for the members of the MileMiglia frequent flyer program, as miles can be obtain on all three airlines.
One well-known service of Alitalia has been continued by Air One. The airline continues to charter “Shepherd One,” the official airline for the Pope. Alitalia continues to provide charters for a well-known jet nicknamed “Shepherd One,” used by the Holy Father whenever he leaves the Vatican on flights around the world. The new consortium is expected to continue to provide Shepherd One.
Tom Martens is the content syndication coordinator for South Arica?s leading Flight comparison & Booking portal, which includes Alitalia Airlines amongst others.
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