Alitalia May Buy 78...
 

Alitalia May Buy 787s In Order To Simplify Fleet

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This is truly wild... Alitalia being renationalized, big changes coming First for a bit of background, the current pandemic is actually helping Alitalia, which was on the verge of collapse even before this year. The Italian government is renationalizing Alitalia, investing hundreds of millions of Euros. Frankly there are a lot more questions than answers,…

Continue reading: Huh: Alitalia May Buy 787s In Order To Simplify Fleet

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21 Replies
Diamond
(@the-nice-paul)
Joined: 5 years ago

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Alitalia is just a real-life game of Fantasy Airlines, played with Italian tax-payers' money.

The state uses a mixture of grants, subsidies and "Hollywood accounting" (it's worth looking up that concept's Wikipedia entry, if you don't already know it). Any resemblance to an ordinary business is entirely coincidental.


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Gold
(@super-vc10)
Joined: 5 years ago

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In the 1960's, as the era of the great transatlantic ocean liners was dying (due to the introduction of the swift and reliable 707 and DC-8 jetliners), Italy chose to ignore this new reality. As countries on both sides of the Atlantic began rapidly retiring their passenger liners, Italy decided they would build two new ones; the superliners MICHELANGELO and RAFFAELLO. These ships cost a fortune. And while elegant, and oozing Italian style, they never earned their way. Italian taxpayers kept them afloat. Often the ships sailed virtually empty, and after short careers, they were withdrawn from service.

Not much has changed in the way the Italian government deals with fiscal realities, and therefore I have little faith in any plans for a 'new', money-making Alitalia.


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(@Sharon)
Joined: 7 years ago

Posts: 372

Alitalia definitely needs to simply its fleet.

If Alitalia would go with this plan, they should only get the 787-8 and -9. I believe the -10 would be too large for most of their routes.


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(@enrico81)
Joined: 5 years ago

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Why 787s? Wouldn't it be easier to have an all Airbus fleet then and buy A350s?

It is all a bit mad but in a way you've got to love how Alitalia keeps surprising us
The customer care isn't great, but they still have a certain amount and character and style. Food on board isn't too bad either


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(@Davis)
Joined: 11 years ago

Posts: 124

The 787 is the right aircraft for them. A350 may be too large to replace the smaller A332s, plus the 787-9/10 can replace the 772s.

I can see them picking up 787s from Norwegian, who has little reason to have such a large fleet. Additionally, as Qatar gets their new 787-9s, they may be wanting to get rid of the -8s. They originally planned to send the -8s to Air Italy, but that plan has obviously been scrapped.


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Gold
(@beedazzle)
Joined: 5 years ago

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Posts: 93

If they can get them cheap, then it can make sense, but I would expect there to be enough of a used A330 market that they could get enough A330s to replace the 777s and then some for way less than buying a bunch of new 787s. All it takes is one hiccup that causes financing issues and suddenly they can't get any more 787s, giving them 3 fleet types instead of 1.


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Gold
(@shoeguy)
Joined: 5 years ago

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Italian taxpayers and holders of its bonds once again get screwed. AZ is a joke that keeps on giving us punch lines.


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Diamond
(@the-nice-paul)
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@Enrico
I understand that the discounted price of a new A350 is almost double that of a B787 — it’s a much higher quality plane.

If you don’t actually need an A350 and you don’t care so much about pax comfort, the B787 makes more financial sense.

Though I can’t believe I’m posting a justification for Alitalia‘s proposal based on “financial sense”.


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Diamond
(@d3kingg)
Joined: 5 years ago

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It’s the right move. You need the efficiency of the dreamliners to survive the next 10 years. Otherwise you’ll end up like South African Airways with dozens of inefficient aircraft.


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 Alex
(@Alex)
Joined: 7 years ago

Posts: 2

Are they keeping their existing A320ceo fleet or ordering new A320neo? I would assume the latter since their short haul fleet is past typical mid life and Airbus may offer tempting discounts combined with an A220 order to replace the A319s and Embraers. Although it still seems a bit ambitious for Alitalia to initiate a total fleet renewal.


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(@james321)
Joined: 5 years ago

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@Lucky, the current Italian government is actually a pretty responsible and competent one. This seems like a good plan that will, in the future, cut costs for Alitalia and help the airline to project a more modern image. Also, when the coronavirus pandemic is over, I suspect there will be quite a bit of "revenge travel" to Italy, which will greatly benefit Alitalia in the absence of Air Italy. The future is bright for Alitalia!


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 Jake
(@jake-2)
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I said exactly this in the last post when it was being renationalised. They're in one of the best positions now for ordering new aircraft as they've got the capital (from the government) and leverage with Boeing and Airbus (for a discount); as they're desperate for near future orders and to fill production slots from other airlines deferring orders. I just wonder wonder what will happen to they're old planes (as the market will be flooded with them)?


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(@gregie)
Joined: 5 years ago

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People keep comparing the 787 to the a350... they serve different markets

787 a330
777 a350


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Gold
(@robert-4)
Joined: 5 years ago

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Posts: 136

Sounds a lot like LOT Polish Airlines about 15 years ago…

Actually worked pretty well for them. Not surprised to see US big 3 doing something similar (787 for UA/AA and A350 for DL)


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(@mark-if-not-available-ill-use-1a-please-2-2-2-2-2)
Joined: 5 years ago

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Outside of Covid, which hopefully will end some day or at least become manageable, I would think the 787 would be a great plane for Alitalia's International ops. Its' highly fuel efficient and is sized to make routes profitable which otherwise might not be. Also, using 1 model heavy jet means better and cheaper maintenance. If they can buy them with OPM, than even better.


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(@Wilhelm)
Joined: 6 years ago

Posts: 95

It makes perfect sense actually. With the current overcapacity in the market, there are plenty of new(ish) aircraft in need of customers. I’m sure the leasing companies will offer very sharp rates.


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 Andy
Diamond
(@andy-3)
Joined: 5 years ago

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If you read the Italian media, the fleet selection was rather based on whether the planes are at least partly manufactured in Italy. Apparently, the 787 has a rather significant number of parts from Italy and so does the 220 and 320. For me, this obviously means they are interested in new planes, because only new planes have an effect on employment at Italian suppliers.


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(@Paul Emerson)
Joined: 10 years ago

Posts: 11

The notion that air lines follow free market rules is a fiction in and of itself - here in Georgia the tax payers subsidize Delta's fuel and allow a virtual monopoly use of our airport by Delta. I can't fly a decent airline like Singapore or Qatar from the worlds busies airport (Atlanta) to New York, or anywhere in the US because 'its not allowed'. Heck, I cant even fly Delta to New York to buy cheaper international tickets because they require Atlanta residents to pay 40-60% more for tickets because competition isn't allowed. So don't worry about state subsidies. All countries do it for their favorite carriers.

When I get the chance to fly Al Italia I do, because I always enjoy the experience. Its authentically Italian and a lot of fun. Long may they continue!


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 Ivan
(@Ivan)
Joined: 12 years ago

Posts: 21

Wouldn't it be cheaper to just buy A330-900neo?

They already operate A330-200. Which mean that transition, training and maintenance would be cheaper.

The 251t variants would be able to do lots of missions that B787-9 could.


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(@roger)
Joined: 7 years ago

Posts: 97

Alitalia would benefit Greatly by distancing themselves from Any of the Skyteam Carriers and would be more successful in ONEWORLD or STAR . Italy is a Preferred Destination for American Travellers and aligning with ONEWORLD and AA , the Key Alitalia North American Destinations are served in BOS/NY/DC/ORD/MIA/LAX and SFO and the AA Network would help. STAR would be a reasonable Option but I do not think Lufthansa wants to compete with Alitalia In the Market, they just want the Italian Market. Skyteam was never a good fit for them.


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(@George)
Joined: 6 years ago

Posts: 3

Northern Europe is paying to have more competition for their own airlines. Ridiculous but unsurprising


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