Italia Trasporti Aereo, the new public company created to relaunch Alitalia, will take off on 15 October. The day before will also be the last day of life of Alitalia, a carrier in extraordinary administration since May 2, 2017. The Ministry of Economy – ITA shareholder – confirms in a note that the discussion with the European Commission on the establishment of the newco. The new company will be operational from next 15 October, the date on which the first flights are scheduled to take off. Thus, after seven months, the close confrontation – not without setbacks and frictions – between the offices of the European Commissioner for Competition Margrethe Vestager and the Italian government ends. Although now Brussels will monitor compliance with the agreements.
The discussion with the European Commission, writes the Treasury, made it possible to reach a constructive and balanced solution, which guarantees the discontinuity necessary for compliance with European legislation. The positive outcome of the dialogue with the Commission allows the procedures relating to the capital increase of ITA to be launched and creates the conditions for the signing of the Memorandum of Understanding for the transfer of certain activities from Alitali to ITA. In fact, the next steps foresee a first injection of liquidity in the newco of 700 million euros for 2021, 400 million for 2022 and 250 million for 2023. With the first payment, Italy Air Transport will be able to buy the aviation branch of Alitalia with private negotiation. and participate in calls for tenders for the brand, handling and maintenance.
In exchange, ITA will have to sell part of the slots to Milan Linate, Rome Fiumicino and other European airports. As for the chapter concerning Alitalia, the Ministry of Economic Development (holder of the extraordinary administration) to pronounce. The Mise will continue to ensure the utmost commitment to support the birth of ITA on schedule – he explains in a note -. The transition period will be accompanied by proper supervision of the extraordinary administration of Alitalia which will take on the social consequences together with the Minister of Labor activating all the protections allowed to accompany the workers who will not find a place in the newco towards new perspectives. The termination of Alitalia scheduled for next 15 October. Buyers of tickets for flights after this date will be protected. The dicastery also explains what the employees will be. Alitalia workers who could be hired in the new company are 2,800 in 2021 (for the most part pilots and flight attendants, ed) and 5,750 in 2022. This would therefore amount to 8,550 people against the current 10,000 for the old company. From Brussels
The European Commission takes note of Italy’s announcement today that ITA, a new state-owned airline, has been launched and will begin flying on 15 October 2021 – they explain from Brussels -. Italy also announced that Alitalia will cease operating as an airline on October 15, 2021. Vestager offices recall that contacts with Rome are continuing to ensure that the launch of the newco is consistent with the rules provided for aid for State. The European ok for allows ITA not to shoulder the possible condemnation of Italy for illicit aid to Alitalia in 2017 and 2019, returning 1.3 billion euros of loans plus interest. On this money – the Commission recalls – the two investigations are still ongoing and no final decision has been taken.
The industrial plan
What does the agreement with the EU envisage? ITA to reveal it in a note. The newco will take off with 52 aircraft (45 for short and medium flights, 7 for intercontinental flights) and will rise to 78 in 2022. At the end of 2025 the fleet will contain 105 aircraft, 81 of which are new generation. As for the ITA slots, it will sell 15% of those currently owned by Alitalia to Linate and 57% of those used in Fiumicino, where it expects to grow over the next five years. On personnel, the hires will be between 2,750 and 2,950 (for the aviation part) which will double in 2025 to 5,550-5,700. “All people will be hired with a new employment contract that ensures greater competitiveness and flexibility in comparison with other operators in the sector”, clarifies the newco.
Routes and revenues
Employees could go up if ITA wins the tenders announced by Alitalia relating to handling (2,650-2,700 more) and maintenance (1,100-1,250) activities. The network of connections will contain 45 destinations and 61 routes which will become 74 and 89 respectively in 2025. Finally, on the economic side, ITA explains that the industrial plan has been approved with a turnover that in 2025 will reach 3,329 million euros, with an economic result (Ebit) of 209 million euros and an operating breakeven to be achieved by the third quarter of 2023.
The Millemiglia program
With the take-off of ITA there will be farewell to the old Millemiglia, which will in any case be replaced by a new ad hoc program. Not being able to participate in the public tender that Alitalia in Extraordinary Administration will launch and manage for the sale of the assets related to its loyalty program, ITA – reads the industrial plan – intends to adopt a new efficient, modern loyalty program right from the start. , oriented to customer needs and allowing greater access to the offer of the company and its partners.