Alitalia Airlines After The Merger
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.
The very first Alitalia flight took place just a year after the end of World War II, in’46, originating in Turin and arriving in Rome via Catania. The carrier’s first international flight was in’47, taking passengers from Milan to South America. Alitalia’s present fleet primarily consists of Boeing and Airbus aircraft, as the company makes strategic changes to expand its international presence after bankruptcy and merger.
Airlines seldom make money, and Alitalia is no exception to the rule. The carrier had only one profitable year,’98. When the Italian government stopped subsidies in 2006, flights were grounded, and the airline found it increasingly difficult to deal with labor issues. Alitalia declared bankruptcy in 2008, and then sold a 25 per cent stake to Air France-KLM.
The newly privatized Alitalia then merged with Air One under a corporate consortium called Compagnia Aerea Italiana (CAI), which finalized its acquisition of the two airlines in late 2008. The new Air One operates frequent flights to 36 destinations in Europe and also to North America, flying from Rome, Milan, 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.
Alitalia officials anticipate that the 25 per cent minority stake held by Air France-KLM will help the new company to achieve its goals of profitability and expanded presence in the international market. The new partnership is a good deal for the flying public, as the chances to earn and spend frequent flier miles through MileMiglia are greatly expanded.
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.