this is how Ryanair tries to disrupt ITA’s take-off

this is how Ryanair tries to disrupt ITA’s take-off
this is how Ryanair tries to disrupt ITA’s take-off

October 15, 2021 is the turning point. On that day, the first flights of ITA (Italy Air Transport) and those of Alitalia. The new company will be born much smaller, with just 52 aircraft and 2,800 employees. According to the directives of the European Commission, there must be a clear one business discontinuity between old and new company. In order for this to happen in practice, there will be no automatism on the basis of which ITA will inherit the Alitalia brand.

This will be auctioned, in which Italian and foreign competitors can also participate. Alitalia’s special commissioners are drafting the tender notice and we already know that they will limit participation to airlines only. But the concrete terms will potentially be decisive in avoiding nasty surprises. To date, we are assuming that ITA will win the tender with which to purchase the brand, yet this is not the case.

In recent days, Ryanair he would have hinted at his interest in the Alitalia brand. Already its CEO, Eddie Wilson, had said he was willing to re-protect passengers in possession of tickets not yet enjoyed. The Irish low-cost company, then, could raise its antennas on slot left free from the passage between Alitalia and ITA: 15% of those previously owned by the former at Linate and as much as 57% at Fiumicino.

Accounts and possible mockery of the Alitalia brand

Commissioner Giuseppe Leogrande has made it known that the Alitalia brand in the balance sheet is worth 150 million, so it should be sold for at least this amount in order not to incur losses. But ITA may be forced to shell out more if it finds itself participating in a bid with bids. Ryanair and not only would have all the convenience to compete with it: if it went well, they would bring home a historic brand that is precious for the business; if it went badly, at least they would have raised the price of the Alitalia brand, penalizing ITA, the new competitor company.

The old Alitalia has every convenience to collect the highest possible amount from the tender, ITA does not. For the state, a round match. In the case of upward raises, on the one hand he would collect more with Alitalia, on the other hand with ITA he would find himself paying more. But weighing too much on the accounts of the new company would not prove in favor of Alitalia’s employees, who will have to be absorbed by ITA with a growth plan years and also hoping that this will also be awarded the handling and maintenance service through tenders.

We must hurry. Clearly, ITA hopes to earn the mark before flights begin. But to be honest, it would be wise to own it as soon as possible. Who would book a flight with an unknown company? And on which one website? The Alitalia site, on the other hand, will be sold to the winner of the tender, so ITA would already have the opportunity to take advantage of the company’s popular platform at the end of the booking phase. All plans would blow up in case of prank. If Ryanair or another company were to win the brand, ITA would be practically born dead.

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