Re: Alitalia in Trouble?
Posted: 14 Sep 2008, 22:48
Well I'm with Rich on this one.
Alitalia should be allowed to die. The airlines overall internal structure is simply untenable.
Project the current structure forward into the mean, lean market environment of the immediate future and one can see only unavoidable, massive and continuous losses.
Look closer for example at the present Fleet with its older, inefficient, high fuel cost, high maintenance signatures and project that forward into a mean tightening market. Nope,against the existing newer, more efficient, properly capitalised fleets flying right now it simply wont work . Take the current endemic and systemic overmanning inefficiencies; project those into that same super competitive, lean marketplace of tomorrow- it doesnt work. Well you could change it. V. Unlikely. Why bother even. Why spend money tearing down the old architecture when you could spend the same money on a new debt free airline. Doesnt make sense.
Well, the Govt might sweeten the deal maybe? Inviting an immediate EU stop order - unfair competition. Even the brand as we know of old - Alitalia - a historically proud, powerful brand as was is, in reality, a millstone and an actual hindrance to developing any kind of business plan with the interests of the current employees and the Nation at its heart. The Alitalia brand for example scores low both in passenger and travel market appreciation as it stands and would get a hell of a lot worse before it got better - and then too on the International Capital financial markets at the moment. Would you lend to the Alitalia brand?
I can't think of any good business case for letting Alitalia go on. Given the unique politico/social position of Alitalia in society there may be a political case. But with any kind of a sound financial outlook. None.
Much better to let it go. If demise, it is to be -sound business preactice suggests its better to be your own author and design the end and rebirth on your terms rather than wait for others. The birth of a new debt free airline enjoying the public support of the government is investable, clean and attractive. Lets go. The Swiss did it. Swissair of all airlines becoming a fresh, growing sustainable flag carrier called SWISS. Much better!
I reckon 'ITALIA' or 'ITALI' might work..
Alitalia should be allowed to die. The airlines overall internal structure is simply untenable.
Project the current structure forward into the mean, lean market environment of the immediate future and one can see only unavoidable, massive and continuous losses.
Look closer for example at the present Fleet with its older, inefficient, high fuel cost, high maintenance signatures and project that forward into a mean tightening market. Nope,against the existing newer, more efficient, properly capitalised fleets flying right now it simply wont work . Take the current endemic and systemic overmanning inefficiencies; project those into that same super competitive, lean marketplace of tomorrow- it doesnt work. Well you could change it. V. Unlikely. Why bother even. Why spend money tearing down the old architecture when you could spend the same money on a new debt free airline. Doesnt make sense.
Well, the Govt might sweeten the deal maybe? Inviting an immediate EU stop order - unfair competition. Even the brand as we know of old - Alitalia - a historically proud, powerful brand as was is, in reality, a millstone and an actual hindrance to developing any kind of business plan with the interests of the current employees and the Nation at its heart. The Alitalia brand for example scores low both in passenger and travel market appreciation as it stands and would get a hell of a lot worse before it got better - and then too on the International Capital financial markets at the moment. Would you lend to the Alitalia brand?
I can't think of any good business case for letting Alitalia go on. Given the unique politico/social position of Alitalia in society there may be a political case. But with any kind of a sound financial outlook. None.
Much better to let it go. If demise, it is to be -sound business preactice suggests its better to be your own author and design the end and rebirth on your terms rather than wait for others. The birth of a new debt free airline enjoying the public support of the government is investable, clean and attractive. Lets go. The Swiss did it. Swissair of all airlines becoming a fresh, growing sustainable flag carrier called SWISS. Much better!
I reckon 'ITALIA' or 'ITALI' might work..
