Alitalia news: auction collapses, government mulls options

[jeef_boner]

Here's what our agents said yesterday:

I expect your flight will go ahead but if the situation changes we will be in touch to arrange an alternative flight for you.

 

Please don’t worry about your booking.

 

Have a great trip and if anything changes we will be in touch via email or through your hotels.

I'm sure they will arrange something, but it'll be us carrying the can! Luckily it's only a European flight (LHR/FCI), which we could rebook via BA for under GBP200, although I expect that cost will rise and seats disappear the moment Alitialia sink.

[Globaliser]

T minus 1 hour, and counting. This is better than a soap opera.

Luckily it's only a European flight (LHR/FCI), which we could rebook via BA for under GBP200, although I expect that cost will rise and seats disappear the moment Alitialia sink.

If AZ does go under, do watch out for other airlines' special fares that may be on offer, in a similar way to those offered on the failures of Maxjet, EOS, Silverjet, Oasis, Zoom and XL.

[zorrosuncle]

Greetings -- What time does the board meet? I see 4pm

which is 10AM New York time. Is that correct?

 

Z U

[Globaliser]

No, 0900 in NYC, ie 45 minutes ago.

 

Current reports suggest that CAI will withdraw the offer. The fat lady may be taking the stage. But Google News is only returning non-English news reports at present.

[zorrosuncle]

Greetings It is all over. Bloomberg justrreported that CAI has withdrawan their offer to take over Alitalia.\

\

ZU

[Globaliser]

No, finally one in English. Bloomberg:-

Alitalia Bidding Group CAI Drops Buyout Offer, Radiocor Says

 

By Marco Bertacche

 

Sept. 18 (Bloomberg) -- Alitalia SpA's bidding group CAI dropped its offer for Italy's largest airline after failing to win the support of all nine labor unions for the government- backed rescue plan, news agency Radiocor reported.

 

The group, led by Piaggio & C. SpA Chairman Roberto Colaninno, withdrew its bid to buy assets from Rome-based Alitalia, the news agency said, citing people familiar with the situation.

[Globaliser]

And the WSJ, now citing government sources:-

Investment group withdraws Alitalia offer

 

By Jennifer Clark

Last update: 10:41 a.m. EDT Sept. 18, 2008

 

MILAN (MarketWatch) -- Compagnia Aerea Italiana has withdrawn its offer for Alitalia SpA (AZA.MI), government sources told Dow Jones Newswires Thursday.

 

The move leaves the cash-strapped company, which is in bankruptcy protection, without a buyer and is likely to lead to chaos for people trying to travel by air in and out of Italy.

 

Talks between CAI and ailing Alitalia's nine unions to come to a deal on layoffs and job conditions had continued all of Thursday.

 

Government-appointed bankruptcy commissioner Augusto Fanztozzi must now decide whether to keep the airline flying.

 

Earlier Thursday, Labor Minister Maurizio Sacconi said there were no alternatives to CAI's offer, indicating the company would soon file for bankruptcy.

Addio! Addio!

[zorrosuncle]

Greetings --

 

Without getting into specific cruiselines, I have to believe that considering the three major ports used by all cruiselines in Italy, we are literally probably talking thousands of passengers that will be affected by the Alitalia situation, many of whom may stiill be able to alter their itineraries. This could be very costly for the cruise industry there, as well as having a major impact on the local economies. We are not just talking about an isolated passenger, here.

\

Z U

[ab0si]

Globaliser:

 

You could well be right, but we are talking about Italy, so who knows?

 

I was listening to the BBC 1/2 hour ago and when the report who has been covering this story for the past 18 months responded the say way ("who knows, this is Italy") when asked if this was the end of the airlines.

 

It hasn't gotten much press, the the unemployment laws are such in Italy that the pilots and cabin attendents are not going to feel much pinch for quite awhile.

[Globaliser]

You could well be right, but we are talking about Italy, so who knows?

Yes, alas that is true. I hope that what kills Alitalia is the refusal of suppliers outside Italy to extend any further credit to the airline - particularly fuel suppliers. Berlusconi might be able to twist Eni's arm to continue supplying fuel within Italy (whatever Eni's boss might say), but I can't see that companies outside Italy would be as generous.

 

There was a report in one of today's UK papers that AZ ground handling here will be put into administration today and that all the handling staff may lose their jobs.

[chipmaster]

http://www.marketwatch.com/news/story/alitalia-begins-cancelling-flights-talks/story.aspx?guid={4A68AB09-B346-4836-8D3E-39A68928F2BF}

 

sorry the link doesn't seem to be working, but talks about 20 flights being axed to ROME :eek:

 

Or looks like they may last a bit longer as long as their is cash...

 

http://www.usatoday.com/travel/flights/item.aspx?type=blog&ak=55847378.blog

[zorrosuncle]

Greetings -- I wish this whole thing would resolve real soon. I keep getting closer to departure date, and my cruiseline doesn't appear to be doing anything, either. I need to know whether to cancel and lose everything, or stay and subject myself to an expensive return ticket plus a bfew extra hotel days mon the back end while I wait.

 

Ironically, if the cruiseline had booked with Alitalia through one of Alitalia's code share partners i.e Delta, it would be Delta's responsibility to rebook me. As it stands now, I lose everything.

 

I guess the air/sea managers onh these cruiselines are noty all that

 

Z U

[zorrosuncle]

Greetings (Edited Repost )-- I wish this whole thing would resolve real soon. I keep getting closer to departure date, and my cruiseline doesn't appear to be doing anything, either. I need to know whether to cancel and lose everything, or stay and subject myself to an expensive return ticket plus a few extra hotel days on the back end while I wait.

 

Ironically, if the cruiseline had booked with Alitalia through one of Alitalia's code share partners i.e Delta, it would be Delta's responsibility to rebook me. As it stands now, I lose everything.

 

I guess the air/sea managers on these cruiselines are not all that bright.

 

Z U

[bluejays29]

Greetings (Edited Repost )-- I wish this whole thing would resolve real soon. I keep getting closer to departure date, and my cruiseline doesn't appear to be doing anything, either. I need to know whether to cancel and lose everything, or stay and subject myself to an expensive return ticket plus a few extra hotel days on the back end while I wait.

 

Ironically, if the cruiseline had booked with Alitalia through one of Alitalia's code share partners i.e Delta, it would be Delta's responsibility to rebook me. As it stands now, I lose everything.

 

I guess the air/sea managers on these cruiselines are not all that bright.

 

Z U

 

We are booked on Alitalia through Carnival and when I called them yesterday they told us that if Alitalia goes under they will rebook us on another airline we leave October 26th are they lying to us???

[ab0si]

We are booked on Alitalia through Carnival and when I called them yesterday they told us that if Alitalia goes under they will rebook us on another airline we leave October 26th are they lying to us???

 

No, they are not lying to you. The routing might be interesting, though.

[bluejays29]

No, they are not lying to you. The routing might be interesting, though.

 

 

LOL they funny thing is they originally had us on Air Canada then Air Canada cancelled their direct flights to Rome on the weekends so they switched us to Alitalia:eek:

[Globaliser]

I guess the air/sea managers on these cruiselines are not all that bright.

No, they're probably under instructions to use the options that are cheapest for the company, and AZ has now long been very cheap. That's one of the problems with allowing the cruise line to book your air travel - the company's interest is not wholly aligned with yours. If you want satisfactory air travel arrangements, you must either dictate what you want and not settle for anything else (which is what I can do with NCL UK); or organise it yourself. And yes, sometimes it means paying rather more - you can't necessarily both have your cake and eat it.

 

An interesting "where we are now" piece in the FT this morning:-

Alitalia flies into uncharted territory

 

By Guy Dinmore in Rome

Published: September 20 2008 03:00 | Last updated: September 20 2008 03:00

 

Alitalia, with its fuel tanks and forward bookings running close to empty, looks like a dead man walking but still no one is sure of its next destination.

 

"Maybe the abyss," suggested Silvio Berlusconi, Italy's billionaire prime minister who has pinned his political and business reputation on saving the loss-making flag carrier, in which the state has a 49.9 per cent stake, from bankruptcy or foreign ownership.

 

Alitalia cancelled about 30 flights yesterday, mostly out of Milan, for "technical reasons" but insisted it was operating "regularly".

 

Augusto Fantozzi, the government-appointed bankruptcy commissioner, is to meet the civil aviation authority on Monday to discuss withdrawing the airline's licence.

 

...

[zorrosuncle]

We are booked on Alitalia through Carnival and when I called them yesterday they told us that if Alitalia goes under they will rebook us on another airline we leave October 26th are they lying to us???

 

Greetings -- I think I will give my cruiseline a call this morning and see what they plan to do if an Alitalia dissolution takes place; my cruiseline like Carnival Line is part of the Carnival Cruiseline Corporation array of subsidiaries. I will get back to this forum and thread with the information.

 

Z U

[zorrosuncle]

Greetings -- I think I will give my cruiseline a call this morning and see what they plan to do if an Alitalia dissolution takes place; my cruiseline like Carnival Line is part of the Carnival Cruiseline Corporation array of subsidiaries. I will get back to this forum and thread with the information.

 

Z U

 

Greetings (again) --

 

Followup: I contacted a reservations person at the cruiseline and was told that I would have to contact their air/sea department directly on Monday. I asked this person if anyone else had expressed concern over the Alitalia situation and she told me that I was the only one of those who have spoken to her. So I guess I wait until Monday.

Z U

[ab0si]

Alitalia (non)news summary as of Sun evening US time.

 

The Great and All-Powerful Wizard of Oz (aka the Prime Minister) said that Alitalia might (editor's note: ya, "might") be facing bankruptcy. Shocking news.

 

The head of Italy's biggest union said that a foreign carrier should (editor's note: ya, "should") buy Alitalia. this is the same guy who crowed about how the unions blocked the AF/KLM offer. He has also stated that The All-Powerful Wizard "has to" save the airline.

 

The.. oh, enough already. This is one of the reasons I love Italy.. reality is not allowed to interfere with one's view of the universe.

[Globaliser]

The.. oh, enough already. This is one of the reasons I love Italy.. reality is not allowed to interfere with one's view of the universe.

So right! :D

[zorrosuncle]

Greetings -- I think I will give my cruiseline a call this morning and see what they plan to do if an Alitalia dissolution takes place; my cruiseline like Carnival Line is part of the Carnival Cruiseline Corporation array of subsidiaries. I will get back to this forum and thread with the information.

 

Z U

 

My cruiseline says that they cannot cancel out of Alitalia as long as they are still alive, because the cruiseline will be in default. However, in the event that Alitalia should fail, they say that they will protect their passengers and get them back home. Even if the cruise is already underway, they will contact the ship with the new travel arrangements for the Alitalia passengers and the passengers will be notified of the individual changes. Perhaps they have insurance for this eventuality.

 

Z U

[bluejays29]

My cruiseline says that they cannot cancel out of Alitalia as long as they are still alive, because the cruiseline will be in default. However, in the event that Alitalia should fail, they say that they will protect their passengers and get them back home. Even if the cruise is already underway, they will contact the ship with the new travel arrangements for the Alitalia passengers and the passengers will be notified of the individual changes. Perhaps they have insurance for this eventuality.

 

Z U

 

That is exactly what Carnival told us so fingers crossed we all will be taken care of!

[Clairescurtains]

I have no information regarding Alitalia now but I was sweating making our flights on 9/6 and returning on 9/21 and we made it with no problems.

We flew into LGA transfered to JFK with a 3 hour 15 min time frame and had time to spare. Note that this was a Saturday mid day and wouldn't work on a weekday probably but it was fine and our return flights were the same in reverse with no problem.

I said earlier that I would post when we returned so here you are.

Glad the flights worked out for us but a few extra days on the end of a vacation couldn't have been all bad.

[Globaliser]

Today's news, it being the deadline for AZ to present a plan to the civil aviation regulator in order to prevent its licence being withdrawn:-

Major unions sign off on Alitalia deal

 

By COLLEEN BARRY and FRANCES D'EMILIO

 

ROME (AP) — Alitalia's four major union confederations signed off on a resurrected rescue plan Thursday to keep the bankrupt Alitalia airline aloft, signaling a possible breakthrough just as civil aviation authorities were considering whether to ground Italy's flagship carrier.

 

While the deal still lacks crucial backing from pilots and flight attendants, there was a mood of cautious optimism.

 

Alitalia's administrator, Augusto Fantozzi, said a new Alitalia could be relaunched by mid-October, but he appealed to travelers to book flights on the national carrier to secure its future.

 

"Alitalia flies, and it continues to fly, but there has been a reduction in the sale of tickets due to the public's understandable uncertainty and doubts. ... We need to say, 'Buy Alitalia tickets,'" Fantozzi told a press conference.

 

He said ticket sales were down by 100,000 during September, as tough negotiations with unions put Alitalia's future in doubt.

 

The powerful CGIL union, which was among the union holdouts whose refusal to sign an industrial plan last week led to a breakdown in talks, finally signed on during a meeting with Italian investors and government officials at Chigi Palace. The other three confederations were already behind it.

 

...

However, this is being reported as bigger than it was. CGIL had originally signed up to the plan, but then backed out. So on the face of it, we are only back to where we were then. Unless there is real movement from the pilots and the cabin crew, the plan could yet run aground.

 

And there is no word from the regulator as to whether the revival of the bid is enough to stop the licence being withdrawn. The fact that the bid is back on the table is not the same as a viable rescue plan being underway.