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In an Italian newspaper today, the latest news on Alitalia’s saga and destiny seems to be that Easyjet in an official communication has decided to pull out, but Delta is set to enter with an initial share of 100 million euros, similar to the initial involvement with Aeromexico which eventually became 49%. So for now it’s 10% and the Italian Railways 40%. Remaining comprises various participants, altogether pulling off a capital of approx 1 billion euros. In the article Etihad’s name disappeared.
Given these premises, what do you make of Alitalia’s new partnership? Is it in the right direction? Will it recover for decades of endless losses?
Unless there’s a major restructuring and elimination of a lot of domestic routes, it will continue to lose money. The highly profitable Italian Rail system seems to be there to bleed off money into Alitalia which is a bit disturbing in my view. I’d hate to see rail prices go up to cover the losses of Alitalia. And the rail and airline are competing for the same customers on the domestic routes so it’s a bit awkward. Not sure what Delta’s role is in the whole equation.
My impression was that DL usually tries to get management input when it takes a stake. I wonder if that will fly with Alitalia.