The failure of Italy’s Wind Jet could prove to be a windfall for Alitalia

The already extensive list of airlines that have folded in Europe this year has a new addition with Italy's Wind Jet ceasing operations on 12-Aug-2012 after negotiations with Alitalia on the acquisition of the Sicily-based LCC broke down. The country's Civil Aviation Authority, ENAC - Enta Nazionale Aviaziona Civile on 10-Aug-2012 threatened to revoke Wind Jet's Air Operator's Certificate (AOC) as of 13-Aug-2012 in the wake of escalating flight delays and cancellations. ENAC also had instructed the financially struggling airline to hold off ticket sales and pay all outstanding bills of ground handling companies and service providers.

Wind Jet's demise is occurring during Italy's peak summer holiday travel period, and it will provide Alitalia with an opportunity to enlarge its domestic market share organically and build its competitive muscle against the growing presence of no-frills operators. Wind Jet had an approximate 8% share of domestic seat capacity and carried 2.3 million passengers on domestic routes in 2011. Alitalia and Wind Jet signed a MoU in Jan-2012 to explore a merger, which the Alitalia board described as "coherent with the ongoing consolidation processes into the air transport, at national and international level".