After Alitalia’s Demise, ITA Airline Launches With New Look

ROME (AP) — Italy’s new national airline, ITA Airways, flew its inaugural flights Friday and unveiled its brand and logo, recycling the red, white and green of its Alitalia origins as it tries to chart a new future while competing with low-cost airlines.

ITA, or Italy Air Transport, officially launched after bankrupt flag carrier Alitalia landed its final flights Thursday night, ending a 74-year business history that a series of financial crises had marred in recent years.

Protests and strikes accompanied the runup to Alitalia’s formal demise because the much smaller ITA Airways is only hiring around a quarter of Alitalia’s more than 10,000 employees. Negotiations with unions are ongoing.

ITA paid 90 million euros (over $104 million) for the rights to the Alitalia brand and website, but the new airline is called ITA Airways and it has its own website and a new frequent flier program, called “Volare” (“Fly”).

“Discontinuity doesn’t mean denying the past, but evolving to keep up with the times,” ITA President Alfredo Altavilla said in a statement.

During a conference launching the airline, Altavilla insisted that the greatly reduced size of ITA — its slimmer fleet, workforce and destinations — make it a viable carrier that can compete with low-cost airlines while offering better service, connections and value.

“ITA Airways is being born right-sized, in the optimal dimensions both in terms of the size of its fleet and its destinations,” he said. “We don’t carry with us the negative inheritance of being too big that conflict with the economic reality.”

He bristled when asked about reported predictions by low-cost carriers of ITA Airways’ failure.

“They might be very, absolutely right that this is gonna be difficult for us, but I am really curious to see one day their PnL (Profits and Loss) and their balance sheet without all the subsidies that they are getting from the local institutions and the small airports here in Italy,” Altavilla said.

“I want a level playing field,” he added.

The first ITA flight was the 6:20 a.m. from Milan’s Linate airport to the Italian city of Bari, on the Adriatic Sea. In all, ITA is flying to 44 destinations and aims to increase that number to 74 in four years.

Among its routes, the company plans to operate flights to New York from Milan and Rome, and to Tokyo, Boston and Miami from Rome. European destinations from Rome and Milan’s Linate airport will also include Paris, London, Amsterdam, Brussels, Geneva and Frankfurt, Germany. Routes to South America and Los Angeles are planned.

ITA planes will be royal blue with Alitalia’s trademark “tricolore” on the tail, reflecting the red, white and green of the Italian flag. The Italian national sports team colors are blue, and company officials said Friday that the color scheme chosen for the new aircraft aims to make ITA “azzurri,” — the team nickname — too.

For now, the new blue Airbus aircraft exists only in advertisements, with Alitalia’s old white fleet actually in the skies.

Officials were coy about possible partnerships with other airlines. Previously, Alitalia was a member of the SkyTeam alliance, which included Delta, Air France and KLM, among other airlines.
I
TA has 52 planes that it says will grow to 105 in the same period and is pointing to next-generation aircraft that use sustainable, alternative fuel sources.

The company launched with 2,800 employees — 70% of them from Alitalia — and said it expects to increase the size of its workforce to 5,750 by 2025.

Alitalia On Strike: What Happened Behind The Scene?

2000 pilots and crew members went on strike at Alitalia. Although representatives of the European Cockpit Association (ECA), which represents pilots from 36 countries, travelled to Rome to give their support to the Italian pilots’ union Anpac, this was merely to convince Alitalia “that a productive, positive relationship with a professional pilots union is the most effective way to succeed in today’s marketplace.”

When those 2,000 pilots and cabin crew went on strike for eight hours on 20 March. This coincided with a work stoppage by all employees at the Meridiana Airline on the island of Sardinia and an eight-hour strike by air traffic controllers at the airline safety agency ENAV in opposition to privatisation. Around 300 flights were cancelled at Italian airports and all airline travel was subject to major delays. A further 24-hour strike has been announced for 7 May.

The immediate reason for the strike was the failure of contract talks between management and several unions (Uitrasporti, Anpav, Anpac). However, this takes place in the context of a bitter global cost-cutting drive at the expense of airline workers.

While the airlines fight out this conflict globally, with the world’s largest firms assuming control of smaller competitors, the unions pursue a purely national strategy, generally ending up supporting the cost-cutting programmes against their own members in the interest of competitiveness. Alitalia exemplifies this process.

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Travelore Tips: Premium Economy Seats Worth The Upgrade

Virgin Atlantic

Virgin Atlantic launched the "premium economy" concept in 1992 to woo cost-minded business travelers—and the service hasn't changed much in the decades since. Not that that's a bad thing; the dedicated check-in and bag drop ensure exclusivity from the very beginning, and the purple leather seats boast a width of 21 inches, one of the biggest in the business. The airline also offers some of the best Premium Economy dining options, including a multi-course meal and after-dinner drinks.

Courtesy Virgin Atlantic

Japan Airlines

If you need a cocktail to help you relax during a flight, Japan Airlines's Sky Premium class has you covered: The expanded beverage selection includes champagne, sake and sochu, among other offerings. This is in addition to the the TUMI amenities kit and the unique slide-down seat design inside individual shells, which prevents passengers in front of you from reclining into your lap. The perks start well before you board: pre-boarding lounge access is included.

Courtesy Japan Airlines

British Airways

The airline's recently updated World Traveler Plus cabin now includes more comfortable seats outfitted with greater recline capacity and adjustable head- and footrests. Noise-canceling headphones and a fleece blanket only add to the comfort level. Plus, the entire dining experience has been improved: A three-course lunch or dinner includes some items from the business class menu, as well as snacks and cocktails. And if that's not enough, meals are served on actual china.

Courtesy British Airways

Qantas

A team of Australian hospitality experts is involved in the high-quality (and chic) premium economy experience aboardQantas. The cabin's wide seats also have a pitch that ranges from 38 to 42 inches; they come with adjustable ergonomic headrests designed by Marc Newson and built by Recaro. And menu, designed by chef Neil Perry, is complemented by fine Australian wines. There's also a self-serve snack bar as well as beverage service throughout the flight, starting with a welcome drink.

Courtesy Qantas

Air New Zealand

Known for being one of the most innovative airlines in the world (have you seen the epic Hobbit-themed safety video?), Air New Zealand's Premium Economy Spaceseat (available on its 777-300 aircraft) is otherworldly. The stylish, white leather seat (outfitted into its own shell) is quite striking: It has two center seats, which allow passengers to face each other over an extra-wide armrest. It's perfect for traveling couples, who can enjoy a dinner date at cruising altitude.

Cathay Pacific

Every trip on Cathay's Premium Economy cabin starts with a hot towel and a glass of bubbly (or juice, if you so prefer), hinting at the enhanced food service for the flight (including tasty meals and a variety of snacks). The seats, which have an eight-inch recline, end on either legrests (if you're in the front row) or three-position footrests. Amenities like noise-canceling headphones, fancy bathroom soaps, eco-friendly amenities, and the oversized pillows add to the luxurious experience.

Courtesy Cathay Pacific

Alitalia

A dedicated check-in desk plus priority baggage handling at the destination streamline the pre- and post-flight experience when you've booked a Classica Plus ticket. The ergonomic seats are fairly wide at just under 19 inches, and the leg rests and 120-degree recline add to comfort of the product. Because you're flying Italian, the food and beverage perks are delicious: You're served a welcome drink, a traditional antipasto, and Italian wine, before capping the meal off with a shot of espresso.

OpenSkies

The lesser-known sister airline to British Airways only has one route: New York City (from either JFK or Newark Airport) to Paris' Orly Airport and back. Its Premium Plus category is all about intimate luxury thanks to a 2:2 configuration. The seats—with chic leather accents—recline to a comfortable 130 degrees. With the 47" pitch, it's difficult to find a more spacious premium economy seat flying the friendly skies. Bonus: Everyone on the plane has access to an entertainment-packed iPad.

Courtesy OpenSkies

ANA

Like JAL, ANA offers premium economy travelers lounge access in Tokyo plus in several airports in the U.S. and Europe. In the air, you'll be treated to seats that are nearly 20 inches wide, with both lumbar support and a foot rest. The meal service is technically the same as what you would get if you flew economy, but there are added treats such as red and white wine plus dessert from the business class menu. Don't forget to sift through the amenities kit; slippers are included.

Courtesy ANA

Thai Airways

Now that Thai Airways has ceased flying through the U.S., American travelers looking to board the airline have to get Europe first, with the most convenient connections via Scandinavia. Flights from Stockholm or Copenhagen to Bangkok are selling the last five rows of the business cabin on a Premium Economy ticket, meaning you get to travel the 11-hour flight in a lay-flat seat with the airline's economy service. Pricing here is roughly half the business rates and won't include the fancy dining options, which shouldn't be a big deal if you're spending most of the time sleeping.

Courtesy Thai Airways

Contributed by Chadner Navarro, www.cntraveler.com

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Travelore News: The New Alitalia Reveals 4 Simple Secrets Of Future Success

After the first Board meeting for the New Alitalia, the airline called for a press conference today in Rome. The development plans for a new Alitalia was introduced. The joint venture airline started operation on January 1, 2015.

The new venture is owned 49% by the national airline of the United Arab Emirates, Etihad, and a 51% stake is owned by the Italian owned CAI. Today's press conference at the Rome St.Regis hotel was attended by board members of Alitalia and Etihad.

James Hogan, Alitalia's new VP is also Etihad's CEO. He mentioned challenges by other European airlines but has a simple solution for Alitalia.

Mr. Hogan is convinced this substantial investment by Etihad Airways into Alitalia of 560 Million Euro will be a good one.

The new leadership disclosed a simple plan for the new Alitalia to be successful.

The key for success was summarized in naming 4 priorities.

1) The people working for an airline is the most important asset.
2) Strength of the brand. With EXPO Worldwide this is already a new focus.
3) Quality of the aircraft and excellent on board service.
4) Route network

Etihad is able to add Italy as a new network center. Alitalia has access to a new network center in Abu Dhabi.

Non stop flights from Venice to Shanghai, more service to North and South America will put Italy back on the global aviation map with direct flights from points around the globe. Italy is a strong business travel and leisure brand. Asia and North American destinations will be part of an important expansion. Non stop to Tokyo and San Francisco are planned for later 2015.

Connecting in Abu Dhabi, Asia and Australian destination, as well as India will be part of a new expanded code share network.

Air France, KLM, Delta are Alitalia partners as well and this partnership will also be important in future planning.

There will be little need in the future to connect from and to Italy through Switzerland or Germany.

The linkage established with Etihad and Etihad's current partners, Alitalia is expected to be profitable in 2017.

The New Alitalia will have an expanded Cargo network. New partnerships with Avianca had been recently announced.

Re-energize Alitalia is the key for success, and James Hogan wants Alitalia to be the sexiest brand in aviation.

A winning team is ready to take on this challenge.

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Travelore News: New Alitalia Takes Off

ROME, Italy – The first flight of the “new Alitalia” took off today from New York JFK at 01:35 "zulu time" (the time conventionally adopted by the aviation industry, (corresponding to 02:35 Italian local time) and landed in Milan Malpensa at 10:40. The flight was operated by an Airbus A330 aircraft in the Expo Milano 2015 livery branded Alitalia and Etihad Airways, Official Global Carriers of the most important Italian event of the year. The event will host more than 20 million visitors in Milan between May and October 2015. So begins the new Alitalia, a new airline with a majority Italian ownership and 49% owned by Etihad Airways.

Capitan Angelo Pracchi, assisted by First Officer Claudio Bencardino, and by Luca Baldo, Head of Onboard Services, shared the news of the company’s first flight with the guests onboard, who received a Magnifica class amenity kit by designer Salvatore Ferragmo to celebrate the event.

"Today we celebrate the beginning of a new Alitalia,” said CEO Silvano Cassano, “We know we have much work to do, and we will move quickly. In the spring, Alitalia will resume service to China, and in 2015 we will increase service to North America and Latin America. We will develop a range of new destinations, new services, and a fleet with more long-haul aircraft, a new livery and new refurbished aircraft interiors. And our customers, who from now on will be our guests, will be our inspiration."

As of today, Alitalia and Etihad Airways serve 168 destinations with a fleet of 227 of the most advanced aircraft in the world. Combined, the two carriers transport more than 35 million passengers a year. The agreement with Etihad Airways provides a greater number of convenient connections through Abu Dhabi’s hub and will allow the development of a whole new network of flights to Asia, the Middle East, Africa, and Australia, specifically designed for leisure and business travelers.

Travelore News: It's official! Alitalia And Etihad Will Merge.

It's a milestone celebration today for both Italia's national carrier Alitalia and the National Carrier for the UAE. Both have received a merger clearance from the European Commission under EU Regulation No. 139/2004. They can therefore proceed with the proposed strategic partnership announced in August.

Following the completion of its review, the European Commission today confirmed that the partnership complies with the European regulations on competition. In line with previous cases, the airlines undertook commitments aimed at facilitating the entry of new airlines on the Rome to Belgrade route.

The parties continue to work together with a view to completing the transaction before the end of the year.

President and Chief Executive Officer of Etihad Airways, James Hogan, said: “We are delighted to be able to move forward with this process and look forward to a positive outcome and the final conclusion of our transaction with Alitalia.

“An equity investment in Alitalia will be beneficial not only for the both airlines, but, more importantly, it will give more choice and broader travel opportunities to business and leisure travellers into and out of Italy.”

Gabriele del Torchio, Chief Executive Officer of Alitalia, said: “This is an excellent outcome for Alitalia. This investment will provide financial stability and a foundation for impressive long-term growth for the Company and for the travel and tourism industry in Italy, in which Alitalia is a fundamental player.

“Today’s decision by the EU approves the largest ever foreign investment in Alitalia and demonstrates huge confidence in the future of the national carrier.”

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Travelore News: US Warns Travelers Of Canceled Venezuela Flights

Contributed by Hannah Drieier and Jorge Rueda, AP.

Graphic shows reduction in available seats of major airline flights to Venezuela in 2014 compared to 2013; 2c x 3 1/2 inches; 96.3 mm x 88 mm;

Come to Venezuela and you might get a longer trip than you bargained for.

The U.S. Embassy in Caracas issued an advisory Tuesday urging Americans to be careful when traveling to Venezuela because of the steep drop in airline service to the South American country.

The number of seats on flights between Venezuela and the U.S. has fallen by more than half since the beginning of the year, according to the Venezuela Airlines Association. The three largest U.S. carriers - Delta, American and United Airlines - all slashed their service to Venezuela this summer.

The cause: A dispute over some $4 billion in cash trapped in the socialist country.

Decade-old currency controls mean that airlines need government approval to convert local earnings into dollars. And the socialist government, running low on dollars itself, has been preventing carriers from repatriating revenue, with some airlines waiting over a year.

Each successive reduction in service has left passengers scrambling to rebook seats, often for significantly more than they first paid. The scarcity of flights has sent airfares soaring; a one-way ticket to New York now costs more than $1,000.

On Tuesday, the Embassy urged U.S. travelers to leave themselves enough time to make alternative arrangements should their return flights vanish.

While most carriers have reduced service, some, including Air Canada and Italy's Alitalia, have left Venezuela altogether.

Diminishing access to the global air traffic network has many middle class Venezuelans grumbling that they are trapped in their own country.

Even Venezuela's top soccer club is suffering. It said last week it could not find a flight to an international tournament in Peru and would have to spend several days traveling to Colombia and catching a flight from there.

President Nicolas Maduro has downplayed the airline exodus, dismissing it as a crisis cooked up by the "bourgeois press." At one point, he said carriers were only temporarily adjusting schedules to meet demand for flights to Brazil for the World Cup.

He has warned that airlines abandoning the country wouldn't be allowed to return.