Air France-KLM and Alitalia stated (29-Mar-2010) they plan to accelerate their joint projects in 2010. In Jan-2009, Air France-KLM signed an agreement with Alitalia strengthening their strategic partnership, with Air France-KLM acquiring a minority 25% stake in the Italian airline. Since then, the carriers have undertaken codeshare agreements, fare combinability and two "neighbourly" JV agreements between Italy and the Netherlands and France, respectively, covering cargo services. In 2010, the carriers plan to extend services between Italy and France, with the introduction of the "hubway" concept between Paris-Charles de Gaulle and Rome-Fiumicino which already exists between Paris and Amsterdam. There will also be additional frequencies to Milan (increased from eight to ten times daily between Milan Linate and Paris Charles de Gaulle and Orly). Alitalia will also be joining BlueBiz, Air France-KLM's frequent flyer programme for SMEs, with Air France, KLM and Alitalia to expand the number of "joint contracts" for companies and travel agents from 11 to over countries by 2011. [more]
Air France-KLM and Alitalia to accelerate their joint projects in 2010
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Europe summer 2017 airline capacity outlook: fifth successive summer of above trend seat growth
Airline seat growth from Europe in summer 2017 is set to stay at almost 6% for the third successive summer, according to data from OAG. This rate had not previously been reached since 2010, although this will be the fifth straight summer of growth ahead of its 10 year average rate. The summer 2017 season started on 26-Mar-2017 and, although always subject to further change, the data give a fairly clear picture.
Seat capacity on routes from Europe to Africa will grow the fastest, as the region recovers from a terrorism related drop in demand in North Africa. There will also be above trend growth in almost every other region from Europe (including intra Europe). The only exception is Europe-Middle East, where the newly cautious Gulf airlines' growth is slowing this summer.
On the North Atlantic, always important for the profitability of Europe's leading legacy airlines, growth will be faster than its 10 year trend, but it will at least be a little slower than in the past summer. The loss of market share from the immunised North Atlantic JVs to newer and smaller competitors, including LCCs, is set to continue. As ever, the OAG capacity data provide a window into the changing structure of the airline markets from Europe.
Alitalia: defying gravity again - another loss, another turnaround plan, maybe another last chance
On 15-Mar-2017 Alitalia’s Board of Directors approved yet another turnaround plan. After losses throughout this century and yet another postponement of Alitalia's planned return to profit, this time pushed back from 2017 to 2019, each successive plan becomes more vital to its survival.
Alitalia's latest plan envisages revenue growth of 30% and cost reductions totalling EUR1 billion by 2019. It includes narrowbody fleet cuts, offset by seat densification, load factor gains and improved utilisation. It plans modest widebody growth, with expansion of capacity to the Americas in particular.
A major focus is to improve Alitalia's competitiveness on short/medium haul, which is increasingly dominated by LCCs, and which is vital to feed its long haul. All the usual features of becoming more competitive versus LCCs are in the plan: lower unit costs, unbundling and a simplified fare structure as a result of headcount reductions and other savings in operating costs.
Labour productivity improvement remains crucial to the plan's success. The plan’s funding, and Alitalia's future growth, will be subject to trade union agreement to a new collective agreement and headcount reductions. However, the immediate union response was to call a strike after management presented the plan to employees. Surely this has to be the last chance.