CEO Blog

Written by Ravindra Bhagwanani on . Posted in Archives

All airlines try to find ways to ensure that they will still be around by this time next year. In spite of their extraordinairy efforts, many nevertheless won’t succeed. But Alitalia has found the simplest way: Without anybody really noticing it, they shut down the old Alitalia, incorporated as Alitalia-sai, on June 29 and created a new one, Alitalia-tai. This is in a nutshell a debt-free company with a starting capital of 3 billion EUR of state aid, but assuming the debts related to its Frequent Flyer Program MilleMiglia, which is not directly affected by that transaction. However, the European Union made its approval of the state aid subject to Alitalia’s “making a clean break with its past”. Looking at its fleet, network, management/workforce and Frequent Flyer Program, there are certainly more reasons for doubt than anything else regarding that condition. But if it doesn’t work with Alitalia-tai, why not trying with -uai, -vai, -wai etc.? At least until also the last MilleMiglia member has managed to use all outstanding miles?