- CAPA Analysis
- Schedule Analysis
- Route Maps
- US Route Data
- Annual Reports
- Print Summary
- IATA Code
- ICAO Code
- Corporate Address
- Piazza Almerico da Schio Pal. RPU
- Main hub
- Rome Fiumicino Airport
- Business model
- Full Service Carrier
- Domestic | International
- Joined Alliance
- Association Membership
- Codeshare Partners
Air Europa Lineas Aereas
Air One Smart Carrier
Azerbaijan Airlines AZAL
China Eastern Airlines
Darwin Airline / Etihad Regional
Delta Air Lines
KLM Royal Dutch Airlines
Middle East Airlines
Majority owned by private consortium Compagnia Aerea Italiana (CAI) and Air France-KLM, Alitalia is based in Rome and is the national airline and largest carrier in Italy. The carrier operates an extensive domestic and regional network within Italy and Europe and international services to North America, South America, Africa and Asia. Alitalia is a founding member of SkyTeam.
Location of Alitalia main hub (Rome Fiumicino Airport)
881 total articles
69 total articles
A 16-day US Government shut-down and continuing pressure created by the devaluation of Japan’s currency did not hinder Delta’s 3Q2013 earnings growth as profits improved by USD444 million year-on-year to USD1.2 billion (excluding special items).
With corporate demand holding steady and holiday bookings looking relatively solid for Nov-2013 and Dec-2013, Delta CEO Richard Anderson is declaring the carrier will post an all-time record profit during 2013.
Delta throughout much of 2013 has been riding a wave of positive momentum despite some miscalculation in the spool-up of its Trainer refinery, and the continuing pressure from the devaluation of the Japanese yen. Even as it makes proclamations of record profits for 2013, Delta’s CEO Richard Anderson stresses that the carrier is keeping its head down as it works to continue the carrier’s advancement.
Alitalia had another bad start to the year. Its 1H2013 net loss, reported on 26-Sep-2013, was EUR93 million worse than the same period last year and it faces the real prospect of running out of funds before the year end.
Only eight months after requesting an emergency loan from shareholders, its Board will seek a EUR100 million capital increase at a shareholders’ meeting on 14-Oct-2013. 25% owner Air France-KLM has signalled opposition to this plan and this sum may not even be sufficient beyond the short term.
Alitalia’s 2013-2016 industrial plan, announced only in Jul-2013, aims for breakeven at the net profit level in 2015. This will not be worth the paper it’s written on if Alitalia does not manage to raise survival funds quickly. The Italian government, although not a shareholder, is reported to be talking to Italian banks about additional loan finance. If Alitalia’s short term needs can be met, this could give vital breathing space for a long term solution to be found, possibly involving new shareholders. But more "last chances" cannot be anticipated.
The current political turmoil in Egypt has led to a number of European nations advising their citizens not to travel to the North African country. The response by airlines has varied, but a number have announced the suspension of flights. Whether flights are suspended or not, demand for travel to Egypt will be hit by the ongoing news coverage of events there and the advice of many European governments.
In this report, we examine the importance of European airlines to the air travel market in Egypt and the importance of Egypt to European airlines. Egypt may need European airlines more than they need it, but Egypt represents a noticeable (and in some cases growing) proportion of the total network for a number of them. The year-round attraction of Egypt as a leisure destination, contrasting with the summer-only appeal of other destinations, means that this proportion is greater in the winter than in the summer for many European carriers.
Emirates Airline has twice as much capacity on fifth freedom routes as it did a decade ago, although its overall capacity share on fifth freedom routes has decreased from 10% in 2003 to 5% in 2013. But the fifth freedom proportion may be on its way back up if Emirates can realise stated ambitions to serve more fifth freedom routes: Milan-New York launches in Oct-2013, and beyond that Emirates has flagged potential opportunities from the UK to the US as well as trans-Pacific.
These would represent different markets from Emirates' core grouping of fifth freedom routes in Australia: to Australia via Bangkok, Kuala Lumpur and Singapore as well as from Australia to New Zealand. These routes comprise 77% of its fifth freedom network. Entry into other markets would be on more competitive ground where the market is more mature and also reliant on loyalty programmes, which Emirates is a bit shy on – but this could change substantially if it receives its wish and is able to partner with American Airlines.
Even after some years of joining together to fight the foreign invasion by LCCs, this has not been a great year for Italy’s loss-making established airlines. The Alitalia Group, formed from the merger of Alitalia and Air One, has had to seek additional crisis loan funds from its shareholders and the Meridiana airline group, formed from the old Meridiana, Eurofly and Air Italy, has undergone a recapitalisation.
CAPA recently analysed Alitalia’s new 2013-2016 industrial plan and, in this report, we turn our attention to Italy’s second indigenous carrier. Meridiana is even more heavily loss-making than Alitalia. Its fleet is ageing, its international network is sub-scale and its dependence on the domestic market is likely to bring it into ever more competition with Europe’s leading LCCs, while its unit costs mean it is likely to continue to struggle to compete with them.
In Part 1 of our report on the Alitalia Group’s 2013-2016 Industrial Plan, we considered the first two of four strategies identified: the redefinition of the roles of Alitalia and Air One on short/medium haul and the expansion of its intercontinental activities. In Part 2, we attempt to assess its objectives around the other two elements of the Plan, on which it has given fewer details.
These two areas are collaboration with infrastructure partners (including a focus on intermodal connections with high speed rail) and the development of its MilleMiglia loyalty programme. In identifying high speed rail and the opportunities presented by better exploitation of its FFP as strategic priorities, Alitalia has shown some innovative thinking.
However, its profit targets to 2016 are far from ambitious and the Plan needs reinforcement if it is to become the much needed catalyst to provoke more radical change that is necessary to restore Alitalia’s competitiveness.
Great news! CAPA now offers email and phone contact functionality through its partnership with Gooey. Corporate access for this feature is USD1000 per annum.