ab0si Posted May 8, 2008 #76 Share Posted May 8, 2008 No new news on Alitalia? Has anyone heard anything about flight restrictions as far as luggage or fluids? I am hanging on the idea that it will still be in operation through my flight time, end of June. Just dont want to scramble at the last min for a flight before my cruise! Alitalia has not changed luggage limits recently. Neither the EU nor the U.S. have changed liquid carry-on rules recently (100 ml bottles in 1 liter bag). Unless the E.U. moves much quicker than the usually do, it will be awhile before penalties are imposed for the illegal aid given the airlines, so they are most like still going to be flying through June at least. Obviously, things can change rapidly, so who really knows? If I were a betting man, I'd lay 10:1 or better than Alitalia will still be operating for your flight. Paul Link to comment Share on other sites More sharing options...
Globaliser Posted May 8, 2008 Author #77 Share Posted May 8, 2008 No new news on Alitalia?The Commission has given Italy two weeks to justify the loan to Alitalia, to demonstrate that it is not State aid to the airline. Berlusconi has, in response to the threat to declare the loan illegal, threatened to nationalise Alitalia and to give it to the railways. The Commission has responded that it does not care whether Alitalia is in public or private hands, but any nationalisation process must not constitute disguised State aid - ie the State must not pay more for acquiring ownership of the airline than a private investor would have paid. And to spice up matters, a Berlusconi nominee from his party is due to assume the Commission's transport portfolio, which will have the job of deciding this issue. There continue to be noises about interest from Aeroflot. But a purported bid from a Brazilian group has turned out to be complete hot air emanating from a recidivist wannabe fantasist. In other words, sorry, no news. Link to comment Share on other sites More sharing options...
ab0si Posted May 9, 2008 #78 Share Posted May 9, 2008 "recidivist wannabe fantasist." is one of the greatest descriptions I have ever read. Consider the phrase stolen. I can think of SO many people and company I would enjoy applying this to. <grin> Paul Link to comment Share on other sites More sharing options...
Kolleen Posted May 14, 2008 #79 Share Posted May 14, 2008 No new news I guess. : ) Link to comment Share on other sites More sharing options...
nomoredyess Posted May 15, 2008 #80 Share Posted May 15, 2008 Called today and got our seat assignment for our June 14th flight. Not that it should really be any insurance, but the customer service agent who I spoke with said that they dont plan on any work stoppages anytime soon. Dont know if she would really know, but figured I would pass it on. Keeping fingers crossed!!!! Link to comment Share on other sites More sharing options...
ItaliaAmerCruzLady Posted May 15, 2008 #81 Share Posted May 15, 2008 That does make me feel slightly assured. Thanks for that update. We leave on the 25th of June. Hopefully they will run through the summer. Link to comment Share on other sites More sharing options...
Globaliser Posted May 15, 2008 Author #82 Share Posted May 15, 2008 No new news I guess.The next date in this saga is 30 May, which is the deadline that the European Commission has given the Italian government to demonstrate why the €300m "loan" is not illegal State aid. If the Commission decides that it is illegal, it can order that the money be repaid by Alitalia to the government. In business terms, the dying swan effect is in full swing. Reported by The Guardian:- Alitalia losses underscore dim hopes of rescue Reuters, Wednesday May 14 2008 By Deepa Babington ROME, May 14 (Reuters) - A rescue for Alitalia, Italy's long-suffering flagship airline, is looking a more distant prospect than ever as losses mount, fuel costs soar and passengers flee. The 60-year-old airline late on Tuesday reported quarterly losses widened sharply from a year earlier, underscoring its deepening financial troubles and belying Italian government rhetoric that businessmen are lining up to bid on the carrier. Instead, analysts say the airline is more unattractive as a takeover target today than when it was first put up for sale more than a year ago -- bookings are down as much as 40 percent, debt has risen 32 percent, and fuel prices have doubled. The double whammy of rising costs and lower revenue as passengers abandon the airline mean hopes of attracting a buyer and fending off bankruptcy are getting slimmer by the day. "It becomes a downward spiral," said Peter Morris, chief economist at aviation consulting firm Ascend. "Every day that passes, there's less and less brand value that remains in Alitalia. Every month, with every corporate account that goes away, there's a little bit less to bargain with." ... Link to comment Share on other sites More sharing options...
Kolleen Posted May 16, 2008 #83 Share Posted May 16, 2008 Thanks for the update Globaliser. There really isn't anything those of us holding tickets can do as far as I know. Especially if we are ticket under Alitalia's code. Link to comment Share on other sites More sharing options...
ItaliaAmerCruzLady Posted May 19, 2008 #84 Share Posted May 19, 2008 Well, I just called and checked up on our reservations for our flight end of June, and they have changed the times slightly, not more than 20 mins or so, but I wanted to keep tabs. they did say they would contact our TA of any significant changes.So....heres hoping for the best. Link to comment Share on other sites More sharing options...
Kolleen Posted May 20, 2008 #85 Share Posted May 20, 2008 Good luck. I hope everything goes well. Link to comment Share on other sites More sharing options...
Globaliser Posted May 21, 2008 Author #86 Share Posted May 21, 2008 Alitalia's auditor was reportedly unwilling to sign off the accounts, and the board have decided to take an unexpected step with the loan money. Reuters (via The Guardian) reports:- Italy converts Alitalia loan to win auditor blessing Reuters Wednesday May 21 2008 NAPLES, May 21 (Reuters) - The Italian government has agreed to convert a $473 million emergency loan to Alitalia into an asset on the ailing carrier's books, in a surprise move to win auditor approval for the airline's precarious finances. Economy Minister Giulio Tremonti said the new centre-right government had adopted the move at a cabinet meeting in Naples, but called it a temporary measure. Alitalia has said it urgently needs a capital increase to keep flying. "It's a temporary measure so that the internal auditors don't bring up questions," Tremonti told reporters. Alitalia's finances have deteriorated sharply in recent months as passenger bookings fall, debt rises and costs spiral higher on the back of soaring oil prices. The airline, which is flying dangerously close to bankruptcy after a planned sale to Air France-KLM fell apart, reported a wider quarterly loss last week and Italian media say auditor Deloitte & Touche may not sign off on its 2007 accounts. ... Only a step from Enron, methinks. Link to comment Share on other sites More sharing options...
Kolleen Posted May 29, 2008 #87 Share Posted May 29, 2008 LOAN GIVES ALITALIA 12 MORE MONTHS (ANSA) - Rome, May 29 - A special 'bridge' loan for troubled national airline Alitalia has extended the carrier's life by 12 months, the government said in a note accompanying a decree authorising the cash. The decree cleared the Senate last week and is currently before the House for its definitive green light. The government's claim that Alitalia had enough cash for another year was criticised by former industry minister Pierluigi Bersani who likened it to ''pulling a rabbit out of a hat''. Opposition leader Walter Veltroni also expressed his doubts and observed that ''no one believes this. All you need to do is the math based on its losses''. The 300-million-euro loan risks getting a thumbs down from the European Union because Italy is not allowed to give any further state aid to the carrier. British Airways and budget carrier Ryanair have also promised to battle the loan. In other developments, Aeroflot Russian Airlines admitted on Thursday that it had met with Alitalia officials to discuss re-opening partnerships talks but that nothing came of this. Meanwhile, Spanish carrier Iberia said flatly that it has absolutely no interest in buying Alitalia. The conservative government of Premier Silvio Berlusconi is trying to put together a consortium of Italian business interests to buy the Treasury's controlling 49.9% stake in Alitalia but no alliance has yet officially come forward. Any plan to save Alitalia would also have to involve a strategic industrial partner, another airline which would be responsible for the practical running of the carrier. No airline has yet expressed any interest to do this except Air One, Italy's largest private carrier which is much smaller than Alitalia. Alitalia this week confirmed that it posted 495 million euros in losses in 2007, equal to 1.35 million euros a day. However, this was an improvement over its losses of 626 million euros in 2006. Link to comment Share on other sites More sharing options...
ItaliaAmerCruzLady Posted May 30, 2008 #88 Share Posted May 30, 2008 Thanks for the update, I am crossing my fingers and toes that we make it for our flight to Rome ,end of June! Link to comment Share on other sites More sharing options...
Bravo Posted May 30, 2008 #89 Share Posted May 30, 2008 http://www.lifeinitaly.com/news/news-detailed.asp?newsid=9741 Link to comment Share on other sites More sharing options...
Globaliser Posted May 31, 2008 Author #90 Share Posted May 31, 2008 Has anyone seen the auditors' report yet? I am still intrigued as to why it took the board two days to approve the accounts. My suspicion is that the auditors either refused to sign off the accounts on a "going concern" basis, especially if the €300m loan remained as a loan on the books instead of being treated as capital. Very Enron. Link to comment Share on other sites More sharing options...
Kolleen Posted June 4, 2008 #91 Share Posted June 4, 2008 Here's the latest: (ANSA) - Rome, June 4 - The Italian government has modified its Alitalia privatization bill in order to take into account objections from the opposition and avoid possible disciplinary action by the European Union regarding state aid to the national carrier. The revision will be in the form of a ''maxi-amendment'' to the bill granting Alitalia a 300-million-europ 'bridge' loan. This will allow the measure to pass through the normal wheels of parliament as opposed to forcing through a decree, which the center-left opposition had opposed. Based on the modifications, the loan will be transformed into a capital increase necessary for privatization. Another measure in the amendment is an exempting Alitalia from existing Italian laws governing privatization due to ''extenuating circumstances'' regarding the state of the airline's finances and the crisis in the sector. From this point of view, the government hopes the EU will not considered the cash injection to be any form of state subsidy. The amendment also includes the mandate the government has given to the bank Intesa SanPaolo to act as advisor for the sale of the Treasury's controlling 49.9% stake in the airline. This will be the third attempt to privatize Alitalia after the previous center-left government failed to auction the treasury's stake last summer and a merger deal worked out between Alitalia and Air France and presented last March was rejected by unions, because of job cuts, and the then-opposition center-right, which won the April elections. According to the new conservative government, privatizing Alitalia is the only way to save the carrier but many observers believe it will be extremely difficult to find a buyer. It is the government's hope that a leading airline will join with a consortium of Italian investors to buy Alitalia. However, despite assurances from Premier Silvio Berlusconi, even during the election campaign, that potential investors were ready to step forward no consortium has yet been formed nor has anyone expressed a formal interest in Alitalia. Meanwhile, British Airways on Tuesday became the latest airline to state that it had no interest in Alitalia after Germany's Lufthansa, Aeroflot Russian Airlines and Spain's Iberia. Air France at the weekend said that because of the current market crisis it had to think of its own problems. Link to comment Share on other sites More sharing options...
Globaliser Posted June 4, 2008 Author #92 Share Posted June 4, 2008 Based on the modifications, the loan will be transformed into a capital increase necessary for privatization.... From this point of view, the government hopes the EU will not considered the cash injection to be any form of state subsidy. Che è stato un maiale passato battenti la finestra? An Italian paper has reported today that the Commission will announce on 11 June its decision that the €300m does constitute illegal State aid. If it was necessary for the money to be treated as capital, rather than a loan, it's not hard to see how you'd reach that conclusion. The law requires failing airlines to be allowed to fail. Link to comment Share on other sites More sharing options...
nomoredyess Posted June 4, 2008 #93 Share Posted June 4, 2008 Ok i am a little lost, what exactly does this mean? We fly out on 6/14 will we have a plane to fly on? Che è stato un maiale passato battenti la finestra? An Italian paper has reported today that the Commission will announce on 11 June its decision that the €300m does constitute illegal State aid. If it was necessary for the money to be treated as capital, rather than a loan, it's not hard to see how you'd reach that conclusion. The law requires failing airlines to be allowed to fail. Link to comment Share on other sites More sharing options...
Globaliser Posted June 4, 2008 Author #94 Share Posted June 4, 2008 Ok i am a little lost, what exactly does this mean? We fly out on 6/14 will we have a plane to fly on? "Che è stato un maiale passato battenti la finestra?" = "Was that a pig flying past the window?" (Give or take - machine translation has its limits!) Personally, I don't think it's likely that Alitalia will have shut up shop by 14 June. It might limp on through the summer. But if the Commission does decide that the State aid is illegal, much will then depend on Berlusconi's appetite for openly defying that ruling - which in turn is likely to depend on all sorts of other unknowable political factors. However, a genuine rescue seems as far off as ever, if not further. Link to comment Share on other sites More sharing options...
nomoredyess Posted June 4, 2008 #95 Share Posted June 4, 2008 Thanks, that is a little comforting. I just want to get to Italy, not even worried about getting back :) Link to comment Share on other sites More sharing options...
ItaliaAmerCruzLady Posted June 6, 2008 #96 Share Posted June 6, 2008 We are right behind you,going when you return, Hope you make it ok and we do also! Link to comment Share on other sites More sharing options...
Clairescurtains Posted June 6, 2008 #97 Share Posted June 6, 2008 We have flights in Sept and I spoke with an Alitalia rep today and he said "Don't worry about it , we will still be flying, they just have to find someone to buy it." That was not too reassuring but he did give me seat assignments and the ones I preferred were already taken so at least someone is flying then. It also looks like the bank may help them out. The following was from a Forbes article today. But shares in Intesa Sanpaolo SpA were 2.17 percent lower in morning trade following a press report the bank could inject up to 500 million euros into troubled Italian flag carrier Alitalia SpA. Link to comment Share on other sites More sharing options...
nomoredyess Posted June 6, 2008 #98 Share Posted June 6, 2008 Good Luck to everyone, only 8 more days. I am crossing my fingers Link to comment Share on other sites More sharing options...
ItaliaAmerCruzLady Posted June 7, 2008 #99 Share Posted June 7, 2008 I am crossing them for you also, if you make it, then so should we! Link to comment Share on other sites More sharing options...
JohnL1935 Posted June 7, 2008 #100 Share Posted June 7, 2008 Last summer I was biting my nails worrying if Alitalia would still be flying to get us to our Med cruise in Sept '07. We made it and believe it or not, the flight was filled to capacity. Only problem was less wine available than the year before and we were short one bag on landing in Newark on return. We had a plane change in Milan after departing Venice and that was where they must have lost it. It was delivered to our front door in the middle of the next night. This Nov. we're flying to London on US Air and my new worry is over the possibility of flight cancellations because of the high cost of fuel. Seems crusin will never be like it used to be. If only we had more windmills to solve this problem... Good luck and enjoy your flight and cruise!! John L. Link to comment Share on other sites More sharing options...
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