[ad_1]
The Italian government is preparing to welcome a new national airline now that attempts to rescue the current flag carrier Alitalia have failed. The government has signed an Air Transport Decree to establish a new airline currently known as Newco, although the company’s formal name is marked ITA. We have all the details.
Newco
Alitalia has been subject to government intervention since early 2017 after facing bankruptcy. Since then, Alitalia’s history has been filled with hopeful investors and sudden collapses. The most recent offering from the investor consortium fell through earlier this year.
With the government in control, restructuring the airline to form a new, competitive airline became the only option. Now, the government has given a name to the new airline that will be the national airline of Italy; Newco.
According to FlightGlobal, Transport Minister Paola De Micheli, who signed the decree, stated:
“A national airline is born that will have to play a leading role in the European and international market”,
The new name and new identity of the airline will represent a “clear discontinuity” of the troubled Alitalia.
Progress at last
Italy’s finance minister, economic development minister and labor minister also signed the decree, which is billed as breaking a deadlock after months of minimal progress.
As expected, the new airline will have Fabio Maria Lazzerini as CEO and Francesco Caio as president. The new airline aims to return a national airline to Italy. It will also provide a solid foundation for the flag carrier to be a successful and competitive commercial airline.
Talks between the Alitalia commissioner and the Newco board, as well as with the labor unions, are beginning to take place to prepare the new airline for operations. Meanwhile, Alitalia keeps flying. The airline was hit hard by the global recession this year, but it is still operating.
Relaunch of the airline
Local media are reporting that the new government-owned airline will take off in early 2021. However, the current lack of demand around the world means that Alitalia’s successor is starting life with the odds against it.
Labor Minister Nunzia Catalfo said the following, according to FlightGlobal.
“With the birth of Newco we face an ambitious challenge, which must be met in order to provide the country with a competitive and qualified airline.. “
A plan to relaunch the airline as a low-cost version has already been rejected, meaning the airline will be full service. The current state of the aviation industry makes this a difficult time to relaunch a full service airline.
Although the plan may be for the airline to shed its old Alitalia skin, it has yet to distance itself from Alitalia’s reputation. The new board of directors has a lot of work to do to make this relaunch a success. A union of workers commented that the relaunch “must not go wrong “ or there could be serious consequences. Only time will tell if Newco can leave Alitalia’s shadow behind.
What do you think of the Italian government’s plan? Do you think the new airline will be a success? We’d love to hear your thoughts in the comments.
