Alitalia's bidders: Lufthansa, easyJet & Cerberus; workforce, restructuring, politics all critical
The commissioners of the Italian airline's administration and the Italian government are considering three offers for Alitalia: from
- the US private equity firm Cerberus, and
- easyJet (Air France-KLM denied any involvement in the process, following reports that it had bid jointly with easyJet).
The restructuring plan adopted by Alitalia in Mar-2017 included growth in the more profitable long haul network and a reworking and reduction of short haul in an attempt to make the airline more competitive with LCCs.
The plan was rejected by employees, who did not like the headcount reductions and labour cost saving targets, causing Alitalia to enter administration in May-2017. However, in administration, Alitalia has continued to grow its long haul network.
The balance between long haul and short haul is a critical issue to the bidders for Alitalia, with each having a different focus. Cultural change, restructuring and the end of political interference will also be crucial - but, as Alitalia's unions have demonstrated many times, difficult to achieve.
Become a CAPA Member to access Analysis Reports
Our Analysis Reports are only available to CAPA Members. CAPA Membership provides exclusive access to in-depth insights on the latest developments in the aviation and travel industry, developed by our team of dedicated analysts located in Europe, North America, Asia and Australia.
Each report offers a fresh perspective on the latest industry trends and is available online or via the CAPA mobile app, with customisable alerts to help you stay informed and identify new business opportunities.
CAPA Membership also provides access to our full suite of tools, including a tailored selection of more than 400 News Briefs every weekday and comprehensive data and analysis on thousands of companies around the world.