Skyteam news

[Pieter C. 5]

Delta Air Lines To Add 15 International Routes

 

November 12, 2008

Delta Air Lines said on Wednesday it will add 15 new international routes as it seeks to protect itself from a slowing US economy.

 

Delta said it will introduce the new routes next summer between the United States and what it called the world's fastest growing economies in Asia, Africa, Europe and the Middle East.

 

Delta recently completed a takeover of rival Northwest Airlines to create the world's biggest airline by traffic.

 

US airlines, suffering under a weakening domestic economy, have increasingly been turning to international routes which can often be more profitable.

 

Delta said it will add the new flights between the United States and Japan, Kenya, South Africa, Liberia, Nigeria, Angola, Equatorial Guinea, Sweden, Spain, Czech Republic and Switzerland.

 

A connecting service between Japan and Vietnam will also be offered by Delta, as well as a second nonstop flight between New York and Tel Aviv.

 

"In the current atmosphere of international financial uncertainty, the breadth of Delta's network positions the airline to take advantage of markets that continue to thrive, while offering a natural hedge where there is economic softness," said Glen Hauenstein, Delta's executive vice president of network planning.

 

Delta last month reported a third-quarter loss as it faced more than USD$800 million in extra fuel bills after oil spiked during the quarter.

 

US carriers announced big cutbacks earlier this year as they grappled with unprecedented oil prices, but since then crude has fallen from a record high above USD$147 in July to under USD$57 on Wednesday.

 

In March, Delta unveiled plans to cut 2,000 jobs, with voluntary retirement and "early out" offers, but said later that more than 4,000 employees had chosen to take part in the programs.

 

(Reuters)

 

[Pieter C. 5]

Air France Says Facing EUR100 mln Strike Bill

 

November 13, 2008

A four-day pilot strike at Air France due to start on Friday will cost the French airline EUR100 million euros (USD$125 million), its chairman warned on Thursday.

 

Calling the protest over the retirement age "useless and dangerous", Jean-Cyril Spinetta said in an open letter to unions the strike could worsen the impact of an industry-wide crisis.

 

Air France is the French flag carrier network operated by Franco-Dutch airline group Air France-KLM.

 

Transport officials have warned of severe disruption at French airports over the weekend due to the strike, called by some unions over plans to increase the retirement age to 65.

 

Spinetta said the extension would be optional and pilots would still be able to retire at 60 if they wished.

 

He said European safety authority EASA would in any case soon increase the maximum pilot retirement age to 65 and that France would have to fall in line with this measure.

 

The strike comes as Air France-KLM reaches the closing stages of a contest with German rival Lufthansa to clinch a partnership with Alitalia, one of Europe's most strike-prone airlines, which is emerging from bankruptcy.

 

Spinetta denied a report in Italian newspaper MF that Air France was poised to win the deal, allowing it a minority stake in an Italian consortium that plans to take over profitable parts of Alitalia and merge them with rival Air One.

 

No decision had yet been taken on a partner, he said.

 

"It is up to the Italian industrialists to say which of the large European airlines they have chosen to be their partner when the time comes," he said.

 

Protests by Alitalia employees over the takeover stretched into a fourth day on Thursday, cancelling more than 20 flights and prompting authorities to order workers to end disruptions.

 

(Reuters)

 

[Pieter C. 5]

Alitalia Protests Continue, Govt. Eyes Legal Options

 

November 13, 2008

Protests by Alitalia employees opposed to a takeover by Italian businessmen stretched into a fourth day on Thursday, canceling more than 20 flights and prompting authorities to consider legal options to end disruptions.

 

A group of Alitalia workers held an impromptu 24 hour strike on Monday and have since been following a strict "work-to-rule" protest that has caused delays, cancelled nearly 300 flights and heaped misery on travelers across Italy.

 

Alitalia's pilot and cabin crew unions have been up in arms over the planned introduction of new work contracts after the takeover by the CAI investor group, but they too have distanced themselves from the latest protests, blaming them on a small group of renegade workers.

 

Italy's government, which backs the CAI takeover, has struggled to get the protesters back to work, and the employment minister urged public prosecutors to intervene as Italian television played images of frustrated travelers.

 

Local media reports said the dead body of a woman, due to be flown to Albania, was still at Rome's Fiumicino Airport due to the protests, while Monday's strike cancelled a flight carrying EUR10 billion euros for the Bank of Italy.

 

The precious cargo later took off on a government aircraft.

 

"At this point it's a question of public order, because from my point of view there has been illegal behavior," said employment minister Maurizio Sacconi. "The work-to-rule protest should be looked at carefully by prosecutors because the law is not to be followed just to the letter."

 

An Italian commissioner overseeing strikes said the "work-to-rule" protests were just as illegal as Monday's wildcat strike.

 

Italy's civil aviation agency Enac also fined Alitalia EUR250,000 over the lack of assistance provided to passengers during the disruption this week, and is mulling other penalties against the airline, Enac spokeswoman Loredana Rosati said.

 

The CAI group of Italian businessmen is proceeding with the takeover -- which foresees it cherry-picking Alitalia's best assets, while leaving the rest to the Italian state -- despite resistance, and won EU approval for the deal on Wednesday.

 

CAI has offered EUR275 million (USD$343.5 million) for Alitalia's core flight operations, EUR100 million in a mix of cash and debt for its various units, and will take on additional debt of EUR625 million.

 

Once the deal is wrapped up, CAI is expected to choose either Air France-KLM or Lufthansa as a foreign partner to enter the group with a 20 percent stake.

 

Italian daily MF on Thursday, in an unsourced report, said CAI had chosen Air France-KLM and already informed the Italian government, although an official announcement will not be made until December 2, after Alitalia's relaunch.

 

(Reuters)

 

[Pieter C. 5]

Air France Cuts Flights As Pilot Strike Starts

 

November 14, 2008

Air France cut two-fifths of long-haul flights and half its other services, causing severe airport disruption on Friday as pilots began a four day strike in a protest against proposed retirement age reforms.

 

The carrier said it would be able to operate 65-70 percent of long-haul flights and around half of its planned short and medium-haul flights at the weekend.

 

The strike was called over proposals to allow pilots to retire at 65 rather than the current final retirement age of 60, a measure being discussed in parliament as part of wider social security reforms.

 

The company and the government say the planned change would be voluntary and pilots would not be forced to work until 65, but unions believe it is the thin end of a wedge that will force staff to work longer or accept lower pensions.

 

The strike started at midnight local time on Thursday and is due to last until midnight on Monday and will likely cost the airline EUR100 million euros (USD$125 million), Chairman Jean-Cyril Spinetta said on Thursday.

 

Calling the protest over the retirement age "useless and dangerous", Spinetta said in an open letter to unions the strike could worsen the impact of an industry-wide crisis.

 

He said the extension would be optional and pilots would still be able to retire at 60 if they wished. European safety authority EASA would in any case soon increase the maximum pilot retirement age to 65 and France would have to fall into line.

 

Transport officials have warned of severe disruption at French airports over the weekend due to the strike.

 

(Reuters)

 

Air France Strike Contines

 

November 17, 2008

Air France pilots went on strike for a fourth consecutive day on Monday, in a dispute over the airline's retirement plans.

 

Air France said it expected to run between 65 and 70 percent of its long-haul flights from Paris on Monday, as a result of the strike.

 

The situation on its medium-haul network should remain unchanged, with around half of its flights operating.

 

The airline said it had kept passengers informed of latest developments and would re-route passengers onto other flights where necessary.

 

The strike started at midnight local time on Thursday last week and was due to last until midnight on Monday. It will likely cost the Air France EUR100 million euros (USD$126.9 million), Chairman Jean-Cyril Spinetta said on Thursday.

 

The strike was called over proposals to allow pilots to retire at 65 rather than the current final retirement age of 60, a measure being discussed in parliament as part of wider social security reforms.

 

The company and the government say the planned change would be voluntary and pilots would not be forced to work until 65, but unions believe it is the thin end of a wedge that will force staff to work longer or accept lower pensions.

 

(Reuters)

 

[Pieter C. 5]

Alitalia Canceling Flights To Save Money

 

November 17, 2008

Striking Alitalia staff have hit back at the airline's management, saying hundreds of flight cancellations over the last week have been due to Alitalia's need to cut costs rather than their own industrial action.

 

Alitalia has been canceling scores of flights daily since last Sunday, blaming a group of pilots and cabin crew who are up in arms over a takeover by Italian businessmen and have been following a strict "work to rule" protest.

 

The airline said it would announce in advance the flights to be canceled in the coming week so as to reduce inconvenience for passengers -- a move made necessary by the work to rule and by "a considerable increase in staff off sick."

 

However, unions representing the pilots said the flight cancellations were unnecessary and were aimed at saving money and making it easier for the CAI investor group to take over the company while trying to turn public opinion against the unions.

 

"It is Alitalia, with the consent of the government, of the relevant authorities and of CAI, which has been indiscriminately canceling flights and creating awful disruption to passengers," the rebel unions said in a statement.

 

The head of The Pilots' Union, Roberto Spinazzola, was more explicit in an interview on Sunday with La Stampa daily.

 

"Alitalia bookings are down by 30 percent and management is exploiting our work to rule to cut and merge half-empty flights, reduce duplication and costs, and then say to the public that we are to blame," he said.

 

Alitalia was not available for comment on the unions' allegations.

 

The stream of cancellations slowed over the weekend, but there were still more than 100 flights scrapped to and from Rome and Milan's main airports.

 

Alitalia's bankruptcy commissioner Augusto Fantozzi said on Sunday the airline owed creditors EUR2.3 billion.

 

"It is disagreeable to note that the most aggressive (in demanding their money back) towards an Italian company in difficulty are Italians themselves," he said in a television interview underscoring Alitalia's plight.

 

"Alitalia is an insolvent company which is laying off staff, we have debtors that don't pay us, airports that try to seize our planes on the ground, (Italian energy company) ENI that threatens not to let us fly unless we pay for our fuel."

 

The Italian government, which backs the CAI takeover, has struggled to get protesting workers back in line and has urged public prosecutors to intervene as local television continues to play images of frustrated travelers.

 

The CAI group of Italian businessmen is proceeding with the takeover -- which foresees it cherry-picking Alitalia's best assets, while leaving the rest to the Italian state -- despite the resistance, and won EU approval for the deal on Wednesday.

 

CAI has offered EUR275 million euros (USD$343.5 million) for Alitalia's core flight operations, EUR100 million in a mix of cash and debt for its various units, and take on additional debt of EUR625 million.

 

Once the deal is wrapped up, CAI is expected to choose either Air France-KLM or Lufthansa as a foreign partner to enter the group with a 20 percent stake.

 

(Reuters)

 

Alitalia Brushes Off Strikes As Deal Powers Ahead

 

November 18, 2008

Union strife has repeatedly scuppered Alitalia's efforts to restructure but, for once, wildcat strikes aimed at thwarting the Italian airline's takeover seem unable to put the brakes on a deal.

 

While hundreds of flight cancellations dominate headlines as protests enter their second week, the CAI consortium of Italian businessmen is quietly but swiftly nearing the finish line in its bid to buy and relaunch the bankrupt flag carrier.

 

The group overcame the key hurdle of regulatory approval by winning European Commission backing for the EUR375 million euro (USD$474.2 million) takeover last week. The green light from the airline's bankruptcy commissioner is expected this week.

 

The commissioner must ensure CAI's offer is not below market value. But with no other bidders in the fray and the airline's cash reserves expected to dry up by the end of the month, he has already hinted the offer will be accepted.

 

"We'll wrap up the deal this week," Augusto Fantozzi told Italian television, adding that CAI's offer was not far off the value of Alitalia assets as estimated by independent advisers. "I hope only pleasant surprises remain. By the middle of the week, there will be serenity."

 

CAI is offering EUR275 million for Alitalia's flight operations and EUR100 million in a mix of cash and debt for other units, and will take on further debt of EUR625 million.

 

Indeed, the group this week began sending out letters to hire selected Alitalia staff for the relaunched airline, even if only four out of nine airline unions back the deal.

 

Pilot and cabin crew unions reject new contracts under the takeover, and a small group of renegade workers triggered airport chaos and delayed or cancelled hundreds of flights last week with impromptu work-to-rule protests.

 

Alitalia is expected to cancel a further third of all flights this week. It plans to seek legal redress while the government has vowed to prosecute the offenders.

 

But two sources close to CAI, who requested anonymity because of the confidential nature of talks related to the rescue, said the strikes posed little threat to the takeover, even if they exposed the airline's Achilles heel once again.

 

The Italian government that backs CAI is confident.

 

"CAI's project is going ahead inexorably and irreversibly," said employment minister Maurizio Sacconi. "A small minority can't stop what's in the general interest."

 

The commissioner Fantozzi appeared equally unfazed, even if opposition nearly forced CAI to pull its offer in October and scuppered a previous Air France-KLM takeover of Alitalia.

 

"The protests are, as is reasonable, flaming out because in my opinion, this is a backward-looking battle," he said.

 

Barring further surprises, CAI should wrap up the deal -- including a purchase of smaller rival Air One's assets -- by the end of the month so Alitalia can reinvent itself under private ownership early next month.

 

Talks to line up a foreign partner to give Alitalia backing on an international level continue, the sources close to CAI said. Italian media say Air France-KLM is almost certain to edge out Lufthansa in that race and enter with a 20 percent stake in the relaunched carrier, but the sources cautioned that no decision had been made.

 

Another source close to the talks said Mediobanca had been chosen as the adviser for Air France-KLM and a decision on a partner could come as early as this week.

 

The French airline's Chairman Jean-Cyril Spinetta last week also played down reports and said a partner had yet to be chosen.

 

Air France-KLM has long been considered Alitalia's logical foreign partner, and the two have commercial ties under the Skyteam alliance. Choosing a partner from another alliance might force Alitalia to exit Skyteam and pay a penalty.

 

But Lufthansa's strategy of relying on several hubs is supported by Italian politicians and unions, who believe it will allow Alitalia to maintain operations at its Milan hub and save more jobs in the city.

 

"The competition is still alive, and it could go either way," one of the sources said.

 

(Reuters)

 

[Pieter C. 5]

Italy Agrees Alitalia Sale To CAI Consortium

 

November 19, 2008

The Italian government has agreed to sell Alitalia's assets to a group of Italian businessmen at an improved price, paving the way for the relaunch of the bankrupt carrier in private hands after a two-year hunt for a buyer.

 

Alitalia's best assets will be sold to the CAI consortium for EUR1.052 billion euros (USD$1.33 billion) including debt, in line with independent estimates of their worth and slightly higher than the group's EUR1 billion initial offer, the government said on Wednesday.

 

The near conclusion of the deal after Alitalia's tumultuous search for a buyer that included a failed auction and a failed takeover by Air France-KLM is a feather in the cap for Prime Minister Silvio Berlusconi, who had promised to save Alitalia.

 

The airline filed for bankruptcy in August, weighed down by high staff costs, strikes, a surging oil price and political meddling.

 

With no other bidders in the fray and Alitalia's cash likely to run out this month, CAI's takeover was never in any danger of being rejected, but there was speculation it could be asked to modify its offer, delaying the airline's restructuring.

 

CAI -- or Compagnia Aerea Italiana -- had initially bid EUR275 million (USD$347.2 million) for Alitalia's flight operations and EUR100 million in a mix of cash and debt for other units, and would take on further debt of EUR625 million.

 

The government did not specify how the EUR1.052 billion offer would be split between cash and debt.

 

With approval from the European Commission for the deal already in the bag, the takeover now awaits only a formal signoff by the administrator overseeing Alitalia's bankruptcy. He has already said he will do so after government approval.

 

CAI Chairman Roberto Colaninno in a statement said the group was satisfied with the progress of their offer.

 

CAI must now sign a separate agreement to buy assets of smaller rival Air One, which will be combined with those of Alitalia in a bid to relaunch Italy's national carrier.

 

The group still faces opposition to the deal from Alitalia's pilot and cabin crew unions that reject new contracts under the takeover, but is trying to dismiss that threat by approaching workers directly to offer them jobs.

 

Protesting workers have cancelled hundreds of flights over the past 10 days and Fantozzi has said Alitalia will have to cancel 100 flights a day until the end of November.

 

A reshaped Alitalia with fewer staff and fewer routes is expected to be launched next month. CAI is also expected to pick either Air France-KLM or Lufthansa as a foreign partner to give Alitalia operational backing and buy a 20 percent stake in the relaunched airline.

 

Italian media have said the French airline is likely to edge out its German rival, but sources close to CAI have cautioned that no decision has been made so far and talks continue.

 

(Reuters)

 

[Pieter C. 5]

Alitalia Sees 2008 Operating Loss Of EUR1 Bln

 

November 20, 2008

Alitalia will post an operating loss of EUR1 billion euros (USD$1.25 billion) in 2008, the airline's bankruptcy commissioner Augusto Fantozzi said at a news conference on Thursday.

 

The Italian government on Wednesday agreed to sell Alitalia's assets to a group of Italian businessmen, the CAI consortium, paving the way for the relaunch of the bankrupt carrier in private hands after a two year hunt for a buyer.

 

A reshaped Alitalia with fewer staff and routes is expected to be launched next month. CAI is also expected to select either Air France-KLM or Lufthansa as a foreign partner to give Alitalia operational backing and buy a 20 percent stake in the relaunched airline.

 

Fantozzi expressed optimism that the fortunes of the ailing carrier could be turned around thanks to a deal with a foreign partner.

 

He said CAI would ensure that Alitalia, unlike in the past, "will have a price structure comparable with other airlines".

 

He said Alitalia's load factor had been falling for years, and had "understandably collapsed" in recent months.

 

"I suppose that an international alliance will aim at ensuring a satisfactory load factor," he said.

 

Italian media say the French airline is likely to edge out its German rival, but sources close to CAI have cautioned that no decision has been made so far and talks continue.

 

Alitalia's best assets will be sold to the CAI consortium for EUR1.052 billion (USD$1.33 billion) including debt, in line with independent estimates of their worth, slightly higher than the group's EUR1 billion initial offer.

 

Fantozzi said CAI's offer included EUR427 million in cash.

 

The airline filed for bankruptcy in August, crippled by high staff costs, strikes, surging oil prices and political meddling.

 

The group still faces opposition to the deal from Alitalia's pilot and cabin crew unions, which reject new contracts under the takeover, but is trying to dismiss that threat by approaching workers directly to offer them jobs.

 

Protesting workers have cancelled hundreds of flights over the past 10 days, and Fantozzi has said Alitalia will have to cancel 100 flights a day until the end of November.

 

(Reuters)

 

[Pieter C. 5]

Air France May Challenge Austrian Air Sale

 

November 21, 2008

Air France-KLM is considering legal steps against the Austrian state holding company's planned process for the sale of Austrian Airlines, Financial Times Deutschland reported on Friday.

 

"We are thinking about taking legal steps against the sale process, in which the rules of the game were changed after the fact," the newspaper cited the French carrier's designated chief executive Pierre-Henri Gourgeon as saying.

 

The Austrian government last month responded to pressure from Lufthansa -- the only bidder remaining for Austrian Airlines -- to take on around half the latter's EUR900 million euro (USD$1.1 billion) debt pile.

 

State holding company OeIAG is in exclusive talks with Lufthansa, after Air France-KLM last month dropped out of the race and a bid from Russia's S7 failed to comply with the rules of the tender.

 

Gourgeon, who will be at the helm of Air France from January 1, said OeIAG had made demands on Air France which it later dropped for Lufthansa.

 

Commenting on a possible tie-up with Alitalia, Gourgeon said there would be "healthy competition" in the northern Italian market if Air France won the bid for the carrier and Lufthansa continued expanding its own operations at Milan's Malpensa Airport.

 

(Reuters)

 

[Pieter C. 5]

AF KLM: Economy necessitates 'capacity discipline'

 

Monday November 24, 2008

Air France KLM's decision to slow its growth, revealed last week when it released its fiscal first-half earnings in Paris, is in line "with a greater capacity discipline by most major players," Chairman and CEO Jean-Cyril Spinetta told reporters.

 

Its winter-season capacity will grow just 1.7%, down from an initially planned 4.1%, and encompasses a capacity increase of 2.6% in long-haul flying (down from 4.8%) and a 1.4% reduction on medium-haul routes (reversed from a previously planned 1.6% increase).

 

All regions will be affected by the capacity adjustment, Spinetta noted, "with the exception of the Gulf," to which capacity will grow 14%. "It seems to me that the [economic] behavior [in the Gulf] is not in line with the present economic realities," he commented.

 

The capacity hike in the Gulf compares with a 2% reduction on transatlantic routes (versus an 8% increase in winter 2007-08), a 5% reduction to/from India (reversed from a 15% increase in the year-ago period), a 2% cut on routes to/from Japan and to/from Africa and 3% growth on routes to/from China.

 

The decision to slow capacity growth does not mean AF KLM will relinquish market share, Spinetta stressed. "Despite our capacity discipline, we do remain the clear market leader on long-haul routes from/to Europe," he said.

 

 

[Ken M. 0]

KLM Cityhopper Embraer E190 PH-EZA

 

Pieter,

 

How's the new bird doing?

Saw the AMS delivery arrival videos on youtube.

It looks really nice in KLM colours.

Some nice shots of the aircraft on airliners.net (the AMS arrival shot is my desktop wallpaper at present!).

 

Shame Glasgow won't get a visit.

 

Regards,

Ken

 

 

 

 

[Pieter C. 5]

Ken,

 

Here's a 'history' of Zulu-Alpha's flights:

 

06nov - SJK-SJK (test-flight)

08nov - SJK-REC

09nov - REC-TFS

10nov - TFS-AMS

13nov - AMS-MPL-AMS (training)

14nov - AMS-DRS-AMS (training)

15nov - AMS-MPL-AMS (training)

17nov - AMS-ZRH-AMS (1st commercial flight)

18nov - AMS-EDI-AMS-ZRH-AMS

19nov - AMS-MUC-AMS-EDI-AMS-ZRH-AMS

and so on till now...

 

don't worry, you'll get your 'share' too, when more examples arrive...

 

Technically, NO issues or delays sofar, so we're very happy with the Jungle-Jet

 

Hope to post some peak-preview shots soon

[Y C LEONG 1]

am still waiting for an air to air shot of this beauty to be on my wallpaper.. it really look very nice in klm's blue livery..

[Pieter C. 5]

AF KLM keeps eye on Alitalia, Austrian

 

Wednesday November 26, 2008

Air France KLM remains interested in acquiring 20%-25% in the new Alitalia as well as the Austrian government's 41.6% stake in Austrian Airlines Group, Chairman and CEO Jean-Cyril Spinetta confirmed.

 

"We would be willing to invest about €200 million ($253.8 million) [in Alitalia] through a capital increase," he told ATWOnline last week. The Compagnia Aerea Italia investor group, which was cleared by the Italian government to take over AZ for €1.05 billion, has not announced its choice of international partner. The new airline, which will incorporate Air One, reportedly may be ready to commence operations as early as Dec. 1.

 

"Everything is still very imprecise," Spinetta said, noting that "negotiations have not yet started. . .But yes, I meet regularly with CAI and [head] Roberto Colaninno and I'm sure they do meet with others too." Both Lufthansa and British Airways have expressed their interest.

 

Alitalia said it is reducing domestic and short-haul international flying beginning today, citing ongoing labor unrest as well as administrative issues related to the transfer to CAI. Employees must be placed on unemployment before being rehired by CAI. AZ said its intercontinental flight schedule will be "nearly unchanged." It did not specify how many flights will be cancelled. The AZ unions that have not accepted either new work conditions offered by CAI or redundancy payments agreed to postpone a strike planned for yesterday to Dec. 12.

 

Meanwhile, Spinetta also conceded he was "a bit surprised" by reports that Lufthansa asked the Austrian government to assume €500 million of AAG's debt as part of its takeover proposal. Last week, state holding company OIAG stated it will negotiate exclusively with LH.

 

"Legal conditions were apparently changed," Spinetta said. "I informed the Austrian government that if a new bid would be launched, we would consider participating." He told this website that a legal challenge would be "an option" if Austria assumes the debt. OIAG defended its position, saying that AF KLM never made a formal offer as LH did, sending only two letters regarding its interest in the stake, Financial Times Deutschland reported.

 

 

[Pieter C. 5]

Air France, Lufthansa Still In Running For Alitalia

 

November 26, 2008

Both Air France-KLM and Lufthansa remain in talks to buy a stake in Alitalia, the head of the group buying the Italian airline said, rejecting speculation that the French carrier had already sealed the deal.

 

"We are concluding our considerations on a foreign partner," CAI Chairman Roberto Colaninno told reporters after the group's board approved raising up to EUR1.1 billion euros (USD$1.42 billion) to finance the acquisition of the bankrupt Italian carrier.

 

CAI, a consortium of 16 Italian business groups, has agreed to buy Alitalia's best assets for EUR427 million in a bid to relaunch it as a smaller, more efficient carrier.

 

The group plans to choose a foreign partner -- either Air France-KLM or Lufthansa -- to enter with a 20 percent stake and provide Alitalia operational backing on an international level.

 

Italian media have previously reported that Air France-KLM had already been chosen as that partner, but Colaninno said talks were continuing with both European rivals.

 

The prospective roles of both Fiumicino airport in Rome and Malpensa in Milan under an alliance with either would play a key part in the decision on which partner is chosen, he said.

 

Plans that affect airport hubs are controversial in Italy, and Alitalia's decision last year to cut back at Malpensa set off a backlash from politicians and workers in Italy's north.

 

The choice of Lufthansa as a foreign partner would be expected to help Malpensa remain a major hub for Alitalia, while Air France-KLM would be expected to favor Rome's Fiumicino airport.

 

"The considerations are... so that Italian air transport can satisfy demand from Italy's north, from the Po valley, and so Malpensa will become an important point of reference for international, intercontinental and national flights," he said.

 

"As for Fiumicino, it will concentrate on Mediterranean traffic with intercontinental, international and national flights."

 

Colaninno declined to give a date on which CAI would take over Alitalia, after media speculation that the airline's relaunch could be delayed from December 1 to closer to the end of the year.

 

Alitalia's bankruptcy commissioner has however said that the airline would be CAI's responsibility as of December 1 even if its rebirth were delayed.

 

Alitalia's two-year hunt for a buyer has been littered with delays, missed deadlines and sudden changes in fortunes.

 

(Reuters)

 

Whatever outcome: Lufthansa has already 'introduced' Lufthansa Italia, operating with ex-Germanwings A319's from Malpensa...

 

[Pieter C. 5]

After Cathay (see OneWorld topic), another airline wants to postpone deliveries...

 

Delta To Seek Changes To Boeing Orders

 

December 1, 2008

Delta Air Lines, which bought Northwest Airlines in October, plans to seek significant changes to aircraft orders both carriers had placed individually with Boeing, The Wall Street Journal said.

 

Delta is likely to scale back a Northwest order for Boeing's new, but delayed, 787, and ask the manufacturer to expand a Delta order for the 777-200LR aircraft, the newspaper said, citing people familiar with Delta's plans.

 

The 777-200LR is a long-range aircraft that carries at least 50 more passengers and would better enable the combined carrier to continue pursuing Delta's strategy to shift a greater percentage of its flights to long overseas routes, the paper said.

 

No final decisions have been made regarding the new aircraft and Delta has yet to officially ask Boeing to alter its order book.

 

A change in orders from Delta is unlikely to significantly hurt Boeing as it has secured other customers for 787s, and the manufacturer will be willing to expand its order book for the more expensive 777-200LR, the paper said, citing people familiar with the situation.

 

Delta declined to comment on specific order plans, the Journal reported, but said the company believes the long-term needs of a merged fleet would differ from those of each airline individually.

 

A Boeing spokeswoman said the company remains in regular contact with its customers to make sure their pending orders match their needs, but declined to comment about specific dealings with any airline, the newspaper said.

 

(Reuters)

 

[Pieter C. 5]

The saga continues (to laughable proportions now)...

 

Funds Delay Holds Up Alitalia Deal Closure

 

December 1, 2008

The closing of the sale of Alitalia's best assets has been delayed because the CAI investors' consortium is unable to raise and deliver the funds before December 12, a source close to the matter said.

 

Augusto Fantozzi, the administrator overseeing the Italian airline's bankruptcy, said in a statement that CAI would pay for the EUR427 million euro (USD$541 million) purchase starting December 12, when the airline's assets would be transferred to it.

 

The deal was to have closed on November 30. Fantozzi earlier told state radio technical reasons caused the delay.

 

CAI's investors have already approved raising up to EUR1.1 billion to fund the purchase of Alitalia, but will be able to hand over the money only on December 12, the source said.

 

CAI has agreed to pay EUR427 million in cash and take on debt worth EUR625 million under the government-backed deal.

 

However, CAI will be responsible for Alitalia's expenses starting December 1 and will assume any risks related to its operations from December 12 onwards even if the transfer of assets is delayed, Fantozzi said in the statement.

 

The green light from a European monitor trustee -- one of two remaining regulatory approvals needed -- has already been informally given and a formal approval is expected later, the source said.

 

Alitalia's sale to CAI comes after a difficult two year hunt for a buyer that included a failed auction and a subsequent deal to sell it to Air France-KLM which collapsed.

 

The French airline and German rival Lufthansa are now in the running to buy a 20 percent stake in Alitalia after it is in CAI's hands.

 

(Reuters)

 

[Ken M. 0]

Mamma Mia!

What next in the saga of AZ?

 

Only in Italy ...

 

 

[Pieter C. 5]

Delta To Make Deeper Capacity Cuts As Economy Bites

 

December 2, 2008

Delta Air Lines, which downsized and bought a rival carrier this year, said on Tuesday it would trim 6 percent to 8 percent of its capacity in 2009 as travel demand wanes.

 

The latest round of cuts by the world's largest airline extends a trend among US carriers fighting for profits as economic recession across the world erodes travel budgets.

 

"Obviously it's soft," Delta President Edward Bastian said at a presentation, referring to the outlook for demand.

 

"The revenue environment is as cloudy as it's ever been," he said at the Credit Suisse Group Global Airline Conference. Bastian declined to predict when demand would stabilize.

 

The airline industry announced huge capacity cuts in the first half of 2008 as oil and fuel prices rallied to record highs in July. Energy prices later retreated, pushed lower by economic crisis that also dampened demand.

 

While airlines were generally unprofitable in the third quarter, industry experts say the chance for a return to profitability is greatly improved by cost savings and pricing power derived from the downsizing.

 

Delta, which this year merged with Northwest Airlines, said its domestic capacity would fall by between 8 percent and 10 percent in 2009, and international capacity would fall 3 percent to 5 percent. Systemwide, that means a reduction of 6 to 8 percent, the company said.

 

The carrier, which in June announced plans to reduce its capacity by 13 percent in the second half of 2008, said the new target included previously announced cuts. Capacity reductions affect the number of seats for sale and are achieved by cutting flights or replacing large planes with smaller ones.

 

Delta said it was analyzing how the capacity reductions would affect staffing.

 

In March, the company announced 2,000 job cuts and offered voluntary severance packages. More than 4,000 workers took advantage of the packages. Delta said on Tuesday it would offer such incentives again to meet current staffing needs. Prior to the merger, Northwest trimmed its staff by about 2,500 workers.

 

UAL Chief Financial Officer Kathryn Mikells said the parent of United Airlines is braced for weaker demand as the economy slumps and that it was satisfied for now with its own capacity cuts.

 

"At this point, we continue to be very comfortable that they are the right actions for this environment," Mikells said at the Credit Suisse conference. United announced earlier this year it would cut fourth-quarter mainline capacity by up to 16.5 percent.

 

Other executives from Continental Airlines, US Airways and AMR echoed the industry worries about economic woes and travel demand.

 

Even Gary Kelly, chief executive of Southwest Airlines, the low-cost airline whose enviable fuel hedges often allow it to undersell rivals, said the demand outlook is prompting operational changes.

 

"We are concerned about the economy," Kelly said, adding that Southwest needs to get its flight schedule adjusted for slower demand. The plan is to not expand the fleet in 2009.

 

Economic weakness is punishing airlines around the world, and some major carriers appear ready to consolidate in response. British Airways on Tuesday said it is in merger talks with Australia's Qantas, a move the airline hopes would help it cut costs.

 

BA, currently attempting an alliance with American Airlines, also is in merger talks with Spanish airline Iberia.

 

(Reuters)

 

[Pieter C. 5]

Air France-KLM November Traffic Falls 0.8 Percent

 

December 8, 2008

Air France-KLM said on Monday that traffic dipped 0.8 percent in November, hit by a strike by pilots over proposed retirement age reforms.

 

Without the impact of the Air France strike, which saw around a third of flights cancelled between November 14 and 17, traffic would have risen around 1.8 percent for the month, with capacity rising a similar amount, the airline said.

 

Load factor edged down 0.1 percentage points to 78.3 percent.

 

By region, the Franco-Dutch airline group's European network saw the biggest decline, with a 5.8 percent drop in traffic and a 4.2 percent reduction in capacity, leading to a 65.8 percent load factor, down 1.1 points.

 

Cargo activity fell 13.2 percent in November, hit by a slowdown in trade. Capacity was reduced by 7.5 percent, leaving load factor 4.3 points lower at 67.1 percent.

 

(Reuters)

 

[Pieter C. 5]

Some Alitalia-new, as told by an Italian

 

ALITALIA. Letters to the pilots was been sent and they are now considered by Dec 9 in stand by and positioned getting governemnt subsidies for 7 years until retirement if someone is in these conditions. They'll get 80% of monthly salary and stay home.

CAI is free now to contact everyone that cionsiders interesting in future for employment.

 

ALITALIA-CAI it appears that new network by Jan 12 2009 is composed by 66 destinations in origin from Rome FCO and 22 from Milan Mxp. The new airline have frozend in these days the new winter schedule 2008/9. 23 are the gateways served in domestic network, 34 in

Europe and 13 long haul (16

legs and 88 weekly flights) with 148 liners of which 74 are Airbuses.

 

In the first period Linate airport is again operative wuith domestic and international routes with 11 inside Italy and 8 within Europe. Later is considered to have only the shuttle hop to Rome. The main Rome's gateways is the major keypoint of the network comparing with Malpensa. 66 are the gateways linked (21 domestic, 32 internationals and 13

in long haul) Milan Malpensa will have 22

gateways connected (5 in Italy, 14 internationals and 3 intercontinentals).

This is the list of domestic gateways served from Rome: Turin, Bergamo,Verona, Venice, Trieste, Genoa, Bologna, Pisa,

Florence & Ancona). Pescara, have flights only to Linate. These are the routes operated from Linate & Fiumicino: Alghero, Cagliari, Brindisi, Lamezia Terme and Reggio Calabria. Rome ,Linate and Malpensa to Naples, Bari, Palermo and Catania.

14 routes are available from smaleest airports inside Italy and one is international: Naples to Athens. The international flights will follow the scheme Prato except the addition of Milan Linate to London City and Milan Malpensa to Dusseldorf operated with 12 weekkly flights each. Milan Linate is linked with: Paris, Amsterdam, Barcelona, Bruxelles, Frankfurt,

London Heathrow and Madrid. Milan Malpensa have flights to: Algiers, Athens,

Bucarest, Cairo, Istanbul, Kiev, Moscow, Sofia, Tel Aviv, Tirana,

Tripoli and Tunis. Rome Fiumicino have 32 international routes and 13 are itercontinentals: Accra, Boston,

Buenos Aires, Caracas, Chicago, Lagos, Miami, New York Jfk, Newark,

Osaka, Sao Paolo, Tokyo and Toronto. Milan Malpensa to New York Jfk, San Paolo e Tokyo.

The domestic flights except Naples-Athens are reachable from small airports and bases: Turin to Alghero, Bari, Lamezia

Terme, Naples, Palermo and Rome. Venice to Bari, Naples and Rome. Bologna to Alghero, Bari,

Lamezia Terme, Naples and Rome. Naples to Bologna,

Catania,Genoa, Linate, Malpensa, Palermo, Rome, Turin and Venice. Catania, to Linate, Malpensa,

Naples and Rome.

1554 are the weekly flights operated in the network, 697 are international weekly flights and 88 on long haul.

 

[Pieter C. 5]

Air France To Agree Details On Alitalia

 

December 10, 2008

The final details of a partnership agreement between the CAI consortium taking control of Italy's Alitalia, and Air France-KLM will be agreed on Wednesday, business daily MF said in an unsourced report.

 

Under the agreement, Air France will buy a stake in the new Alitalia of slightly more than 20 percent for EUR250 million euros (USD$321.8 million), MF said.

 

La Repubblica said a deal could be imminent.

 

A source close to the operation said on Tuesday that CAI chief executive Rocco Sabelli and Air France-KLM chief executive Jean-Cyril Spinetta would meet on Wednesday in Milan.

 

CAI is looking for an industrial partner for Alitalia and is in talks with Air France-KLM and Lufthansa.

 

A spokesman for Air France-KLM had no comment.

 

(Reuters)

 

 

Alitalia Needs Alliance, Not Shareholder - PM

 

December 11, 2008

Italian Prime Minister Silvio Berlusconi said on Wednesday he favoured Alitalia striking a commercial deal with a foreign competitor rather than giving it an equity stake, but left the decision to Alitalia's buyers.

 

"A commercial agreement would be opportune because Lufthansa and Air France entering (with a stake) -- these companies could put their interests first and block (Alitalia's interests)," Berlusconi said, speaking at a book presentation in Rome.

 

"So, I think that what's needed isn't a partner but a commercial agreement."

 

Berlusconi said this was his personal position and that the decision was up to the CAI Italian business consortium taking control of Alitalia. CAI is in talks with Air France-KLM and Lufthansa.

 

In Milan, the CEO of Air France-KLM said a Wednesday meeting with CAI was "constructive".

 

"These are the first meetings. (Today's) meeting was one of analysis and (it was) constructive," Air France-KLM chief executive Jean-Cyril Spinetta told reporters.

 

He did not answer reporters when asked about a possible Air France-KLM board meeting to look at Alitalia on Thursday.

 

Spinetta, along with Pierre-Henri Gourgeon who will be at the helm of Air France from January 1, met CAI CEO Rocco Sabelli and CAI Chairman Roberto Colaninno.

 

The chairman of Milan airport operator SEA, Giuseppe Bonomi, was also later seen at the meeting place, a legal office. SEA has been seeking damages from Alitalia after it announced it would cut back sharply at Milan's Malpensa Airport.

 

Italian business daily MF earlier said the final details of a partnership agreement between CAI and Air France-KLM would be agreed on Wednesday.

 

Under the agreement, Air France will buy a stake in the new Alitalia of slightly more than 20 percent for EUR250 million euros (USD$321.8 million), MF said in an unsourced story.

 

La Repubblica said a deal could be imminent.

 

A spokesman for Air France-KLM had no comment.

 

A source close to the matter added Wednesday's meeting also allowed for the signing of documents for the CAI capital increase for the Alitalia acquisition, ahead of a December 12 meeting with Alitalia's bankruptcy commissioner Augusto Fantozzi.

 

(Reuters)

[Pieter C. 5]

Air France-KLM Complains Over Austrian Air Sale

 

December 11, 2008

Air France-KLM registered a complaint to the European Union on Thursday over Austria's plans to sell its national airline to German carrier Lufthansa, saying the deal depended on unfair state aid.

 

Air France-KLM said a decision by the Vienna government to cancel a EUR500 million euro (USD$659.5 million) loan to Austrian Airlines as part of the sale to Lufthansa had not been on the table when Air France-KLM was itself considering bidding for the airline.

 

"Air France-KLM is convinced that the sale of Austrian Airlines to Lufthansa has not been carried out in the best interests of the parties involved or at a normal market price," Air France-KLM said in a statement.

 

"This sale therefore includes elements of state aid requiring detailed analysis by the European Commission."

 

Lufthansa signed the deal to buy loss-making Austrian Airlines last Friday in a move that would push it past Air France-KLM to become Europe's biggest airline.

 

In a two-step deal, Lufthansa agreed to buy Austrian state holding company OeIAG's 42 percent stake in Austrian Airlines and said it would take full control for up to EUR377 million once the EU Commission approved the tie-up.

 

Lufthansa chief executive Wolfgang Mayrhuber said after the December 5 signing he considered the risk of the Commission blocking the deal to be "close to zero".

 

The dispute comes as Lufthansa and Air France-KLM compete for an alliance with Italy's Alitalia.

 

(Reuters)

 

[Pieter C. 5]

Air France KLM protests LH/Austrian tie-up while it pursues Alitalia

 

Friday December 12, 2008

Air France KLM lodged a formal complaint with the European Commission regarding the conditions under which Lufthansa intends to take over Austrian Airlines.

 

The Franco-Dutch group said it "strongly believes" that the transaction "is not being conducted in the best interest of Austrian Airlines stakeholders and at a fair market price. This sale therefore entails state aid elements that need to be thoroughly investigated."

 

Last month, AF KLM Chairman and CEO Jean-Cyril Spinetta told ATWOnline that the group was considering legal action after it emerged that LH obtained a €500 million debt cancellation by the Austrian government as part of its acquisition of state holding company OIAG's stake in the Austrian flag carrier.

 

AF KLM participated in the initial bidding process but concluded it was not in a position to submit a financial proposal in accordance with the instructions imposed by OIAG. "It is now known that the agreement reached on Dec. 5, 2008, between the Austrian authorities and Lufthansa does not follow the instructions imposed during the bidding process on Air France KLM," it concluded.

 

Meanwhile, Spinetta reportedly said he had "fruitful and constructive" discussions with Compagnia Aerea Italia, the investor group set to take over Alitalia. The Italian press is speculating that AF KLM leads Lufthansa in the race to partner with CAI and take a stake in the relaunched airline. However, Italian Prime Minister Silver Berlusconi said Wednesday that "what's needed isn't a partner but a commercial agreement," Reuters reported. He said LH or AF KLM "could put their interests first and block" those of AZ.

 

 

[Pieter C. 5]

CAI Investor Group Formally Buys Alitalia Assets

 

December 12, 2008

An Italian investor consortium buying Alitalia formally took possession of the airline's assets on Friday in another step towards closing the long-awaited deal, said Roberto Colaninno, president of the CAI investor group.

 

CAI's purchase of Alitalia for EUR427 million euros (USD$567 million) was initially set to be wrapped up by the end of November, but had been delayed.

 

CAI, a group of Italian businessmen, has been gradually moving towards completing the deal in recent weeks as the last remaining opposition from employees to the acquisition appeared to lose steam.

 

The Anpav and Avia unions representing flight attendants agreed on Friday to join the major unions in backing the deal, though CAI had effectively ignored their protests so far and begun individually hiring pilots and flight staff.

 

CAI on Thursday said it had also finalized the purchase of smaller airline Air One, whose operations will be folded into those of Alitalia as part of the bid to relaunch it.

 

(Reuters)

 

[Pieter C. 5]

British Airways Open To Alitalia Alliance

 

December 16, 2008

British Airways is open to a commercial alliance with a revamped Alitalia, British Airways chief executive Willie Walsh said in comments published on Tuesday.

 

He did not exclude a commercial accord eventually leading to a wider agreement, including a possible stake in the Italian carrier, business daily Il Sole 24 Ore reported.

 

"What we are offering, under current conditions, is a credible collaboration that will leave the Italian company the possibility of deciding its own future in a flexible manner," Walsh told a group of European reporters.

 

A consortium of Italian investors is relaunching Alitalia, Italy's flag carrier, as a smaller airline. The company has said Air France-KLM and Lufthansa are battling for a stake of up to 25 percent.

 

Asked about the British carrier's proposed three-way merger with Spain's Iberia and Australia's Qantas, Walsh said an accord with each of the two companies was not a definitive end point.

 

"We can't give birth to a structure that precludes other possibilities of consolidation," he said.

 

Asked if British Airways was interested in Scandinavia's SAS, Walsh said, "Not exactly. I think they are more probably oriented toward Lufthansa."

 

He said British Airways had financing for buying new carriers until 2012.

 

(Reuters)