Alitalia has tentatively agreed to merge with Wind Jet and Blue Panorama Airlines. According to AGI reports, Alitalia has signed a MoU with both Italian carriers to this effect. Wind Jet is a LCC operating short haul European services and Blue Panorama operates charter and scheduled services from its Rome and Milan bases. According to Innovata data, Wind Jet and Blue Panorama hold 10.6% and 2.9% of Italy’s domestic capacity, respectively.
Alitalia to merge with Wind Jet and Blue Panorama Airlines
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Air Serbia's 2015 profit another step in Etihad-inspired transformation. Wizz Air a possible threat
Air Serbia's transformation from the loss-making carrier Jat Airways in 2013 to one with the possibility of sustainable levels of profitability took another step forward in 2015, with another positive result. After receiving investment from Etihad and the Serbian government in 2H2013, it had recovered from heavy losses to a small profit in 2014. This was based on an impressive reduction in unit cost, with a realignment of the network and its commercial positioning.
In 2015 Air Serbia again increased its net profit, although this remained slim at only 1% of revenue. Buoyed by its success in establishing a track record of positive results, Air Serbia is growing its European network. Perhaps more significantly, it is also launching its first long haul route, Belgrade-New York, this summer.
Its unit cost is efficient versus legacy airlines and not very much higher than LCCs such as easyJet. It has the good fortune to face only a relatively small amount of competition from LCCs (it only has competition from any other airline on a minority of its routes). However, the ultra-LCC Wizz Air, which has a much lower unit cost than Air Serbia, is its leading LCC competitor and could provide a greater threat over time.
Alitalia's network benefits from Etihad partnership. Time now to shed the dependency culture
Since Etihad's Dec-2014 investment in a 49% stake in Alitalia the Italian airline has enjoyed much positive change. It has worked to move its brand and product more upmarket to differentiate itself from fierce LCC competition in Italy, where Ryanair is the biggest airline by seats.
Alitalia's long haul offering has benefited from its partnership with Etihad. This has mainly been due to codeshare access to a much wider range of destinations in the Middle East and Asia Pacific. However, this summer's launch of a Rome-Beijing service indicates growing self-confidence too. Alitalia has also shown renewed confidence by growing its small niche to Latin America, the main region where it takes the lead over Etihad. On short/medium haul the LCCs still provide a strong challenge, although Alitalia's European offering has been fortified by closer commercial ties with other Etihad investments (in particular airberlin).
However, Alitalia continues to be loss-making (to the tune of EUR199 million in 2015). This is a hard continuing habit to kick, even if the airline still insists that it will break the habit in 2017. The rest of the industry is collectively experiencing record profitability in 2016; an airline that cannot be profitable in such conditions still has much work to do.