CEO Blog

Written by Ravindra Bhagwanani on . Posted in Archives

AZ

With all eyes on Jet Airways/JetPrivilege, it tends to get forgotten that Etihad is still involved in another foreign FFP, Alitalia’s MilleMiglia – with the same result for customers, i.e. a rapid devaluation of the program and there is always a fear that the program can cease to exist any moment. The future fate of MilleMiglia is certainly directly linked to the fate of Alitalia itself, for which the Italian government continues to look for an investor. A bidding deadline for the airline has just been extended again in absence of any acceptable offers – the parallels to Jet Airways are undeniable… And now Etihad punishes the last remaining optimists: Following the recent massive increase of award levels on partner airlines, award levels on Alitalia will be increased on July 01 across the board on international flights, with the strongest increases in Business Class. A roundtrip to the USA will jump from 80,000 to 140,000 miles and to South America from 120,000 to 200,000 miles. Okay, this is still less than what Etihad demands in its own Etihad Guest program for redemptions on these Alitalia flights, where above values stand at 240,000/320,000 miles (depending on the destination) for US flights and at 320,000/400,000 miles for South America… And it continues to publish award levels for flights such as Venice to Abu Dhabi, which is probably to remind of a more glorious past. Just for the purpose of keeping the memory alive: Etihad controlled the FFPs of Air Berlin, Alitalia and Jet Airways. A success story looks differently.