CEO Blog

Written by Ravindra Bhagwanani on . Posted in News

While the current crisis might only accerelate the fate of certain airlines, such as South African (see above), which were in an unstable situation before, certain state aids will represent an unexpected chance for survival. This is certainly the case of Alitalia, which has been looking in vain for a buyer for several years and which will now be renationalised. For that relaunch of a much smaller Alitalia, which will focus on long-haul flights, the Italian government will provide a 3-billion Euro injection – yet an irrational sum compared to the some 10 billions the Lufthansa Group or Air France KLM get while being 6-7 times larger. But to go from there to come up with a conspiracy theory that the Covid-19 virus was created by Alitalia might be a bit too far-fetched nevertheless… The Italian government is also considering switching Alitalia from SkyTeam to Star Alliance although it is unclear what benefit Alitalia will gain: Lufthansa will certainly not accept a strong long-haul presence of Alitalia, but would rather like to see it downgrade to a more regional role.