Alitalia Airlines Rise and Fall Story

Alitalia was founded in 1946 as a subsidiary of the Italian state-owned airline Ala Littoria, which was established in 1934. It began operations with a fleet of 12 aircraft.

The airline's early success can be attributed to its strategic location at Rome's Leonardo da Vinci–Fiumicino Airport, which became its main hub. This allowed Alitalia to connect Italy to other European cities.

Alitalia's expansion into the international market began in the 1950s, with the introduction of transatlantic flights to the United States and South America. This marked a significant milestone in the airline's history.

By the 1960s, Alitalia had become one of the largest airlines in Europe, with a fleet of over 100 aircraft and a network of routes spanning the globe.

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Alitalia has been plagued by financial issues for decades, with the airline reporting only one year of profit since its foundation in 1946.

Alitalia lost money for years due to problems with pilots and crew members, as well as government and political interference.

The airline received state aid several times, including €1.5 billion in 1998 and €1.432 billion in 2002, but these measures only temporarily alleviated the financial strain.

In 2005, Alitalia's capital was increased by €1.6 billion, but the airline still ended the year with a loss of €626 million.

The Italian government was forbidden by the European Union from injecting new capital in 2006, leading to the airline's bankruptcy in August 2008.

Alitalia filed for bankruptcy in August 2008, and a consortium of Italian investors, CAI, presented a binding offer of €1,100 million to acquire parts of the airline in October 2008.

CAI paid €1.052 billion for the profitable assets of Alitalia, including €427 million in cash and taking on €625 million in Alitalia debts.

The airline's financial struggles were so severe that the government was forced to exempt Alitalia from disclosing information on the sale to the market, which led to the trade in Alitalia stock being halted indefinitely.

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Alitalia has a rich history dating back to 1946, but one notable event in its history is when it had its head office in the Palazzo Alitalia in Rome in 1978.

The airline's structure has undergone significant changes over the years, particularly in terms of ownership and status. As of August 2019, Alitalia and its subsidiary Cityliner were in Extraordinary Administration (EA), declared insolvent in May 2017, with Ferrovie dello Stato Italiane owning 35% of the company.

In 2014, Etihad Airways took a 49% stake in Alitalia, marking a significant shift in the airline's ownership. This partnership led to the creation of a new entity, Alitalia-SAI, which was owned 49% by Etihad Airways and 51% by the former Italian stakeholders of Alitalia-CAI.

Here's a brief breakdown of Alitalia's ownership structure over the years:

Alitalia's head office was located in the Palazzo Alitalia in Rome as of 1978. This was a significant milestone for the airline.

The airline started adopting jet aircraft in the 1960s and became the first European airline to have an all-jet fleet by 1969.

Alitalia introduced the Boeing 767-300ER to its fleet in 1995, which was a major restructuring effort to address its loss-making international network.

Here's a list of some of the notable aircraft that were part of Alitalia's fleet over the years:

The airline's fleet consisted of various aircraft types, including the Airbus A319-100, A320-200, and A321-100, as well as the Boeing 777-200ER.

Alitalia's company structure has undergone significant changes over the years. As of August 2019, the company was in Extraordinary Administration (EA) due to its continued loss-making.

The company's status was declared insolvent on May 11, 2017, and its subsidiary Cityliner followed suit on May 26, 2017. Luigi Gubitosi, Prof. Enrico Laghi, and Prof. Stefano Paleari were appointed as Extraordinary Commissioners of the Companies in EA.

Ferrovie dello Stato Italiane, the Italian state railway company, held a 35% stake in Alitalia, with the Italian Ministry of Economy maintaining a 15% stake. Delta Air Lines provided technical expertise with a minority 10% stake.

In 2020, the ownership of Alitalia and its subsidiaries was transferred to the Italian government.

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Alitalia had four classes of service: Economy, Premium Economy, Business Class Medium Haul, and Magnifica. Only long-haul aircraft offered WiFi and seat-back entertainment.

The airline's frequent-flyer program, MilleMiglia, was part of the SkyTeam alliance program, allowing passengers to collect miles and redeem them for free tickets across the alliance.

Alitalia's frequent-flyer program granted access to its Privilege clubs, Ulisse, Freccia Alata, and Freccia Alata Plus, depending on the number of miles collected in a year, with various advantages depending on the club.

These clubs gave access to SkyTeam Elite (Ulisse) and SkyTeam Elite+ (Freccia Alata, Freccia Alata Plus).

In 2015, Etihad Airways acquired a 75% stake in Alitalia Loyalty S.p.A., the owner and operator of MilleMiglia, but later sold it back to Alitalia in 2018.

Alitalia has had its share of hijacking attempts, including one in 2011 where a hijacker tried to divert a flight to Tripoli International Airport, Libya, but was subdued by cabin crew and passengers.

The airline's loyalty program, MilleMiglia, had a combined total of 14 million members worldwide with Etihad Guest, topbonus, JetPrivilege, and Alitalia.

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Delays and cancellations were a major issue with Alitalia, causing frustration among passengers.

The endless crisis led to a decline in service quality, with personnel strikes, delayed or canceled flights, and fewer long-haul trips.

Italians started to become frustrated with the airline's performance.

According to recent surveys, the majority of Italians believe the state should have stopped funding the company with taxpayers' money.

Rosetta Scrugli, a former Alitalia passenger, complained about the airline's poor service, saying "The flight was either late, or often even canceled."

Scrugli also experienced lost luggage multiple times, which added to her frustration.

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Alitalia offered four classes of service: Economy, Premium Economy, Business Class Medium Haul, and Magnifica.

Only long-haul aircraft provided in-flight entertainment and WiFi, making your travel experience more enjoyable on those routes.

The airline's frequent-flyer program, MilleMiglia, allowed passengers to collect miles and redeem them for free tickets across the SkyTeam alliance.

MilleMiglia also granted access to Alitalia's Privilege clubs, which offered various advantages depending on the number of miles collected in a year.

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There were three Privilege clubs: Ulisse, Freccia Alata, and Freccia Alata Plus, each with its own set of benefits.

These clubs gave access to SkyTeam Elite (Ulisse) and SkyTeam Elite+ (Freccia Alata and Freccia Alata Plus) for high-mileage flyers.

In 2015, Etihad Airways acquired a 75% stake in Alitalia Loyalty S.p.A., the owner and operator of MilleMiglia, but Alitalia retained a 25% stake.

However, in 2018, Alitalia reacquired the 75% stake in Alitalia Loyalty S.p.A. from Global Loyalty Company LLC.

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Alitalia had been a part of the SkyTeam alliance since 2001, and in 2009, Alitalia - LAI joined as well. Alitalia had arranged code-share agreements with SkyTeam members, allowing passengers to fly to numerous destinations using a single Alitalia ticket.

The airline also joined Air France, KLM, and Delta's transatlantic joint venture in July 2010, meaning that the profits from flights across the Atlantic would be shared between the four airlines. Alitalia left the SkyTeam Transatlantic Joint Venture on 21 May 2020.

Alitalia's fleet consisted of various aircraft, including the Airbus A319-100, A320-200, A321-100, A330-200, and Boeing 777-200ER. The airline had a total of 78 aircraft in service before ceasing operations.

Here's a breakdown of the aircraft in Alitalia's fleet before it ceased operations:

The airline had a significant fleet renewal process between 2009 and 2011, with 34 new aircraft joining the fleet and 26 older planes being retired. The majority of the fleet was leased from Aircraft Purchase Fleet (APF), an Irish leasing company.

The final fleet of Alitalia consisted of 78 aircraft, including the Airbus A319-100, Airbus A320-200, Airbus A321-100, Airbus A330-200, and Boeing 777-200ER.

The Airbus A319-100 had 19 aircraft in service, each seating 144 passengers.

The Airbus A320-200 had 38 aircraft in service, each seating 171 passengers.

The Airbus A321-100 had 5 aircraft in service, each seating 200 passengers.

The Airbus A330-200 had 10 aircraft in service, with 20 aircraft on order, and a total capacity of 256 passengers.

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The Boeing 777-200ER had 6 aircraft in service, with 30 aircraft on order, and a total capacity of 293 passengers.

Here's a breakdown of the final fleet:

The fleet also included 7 Airbus A330-200 aircraft that were transferred to ITA Airways, and 2 Boeing 777-200ER aircraft that were also transferred to ITA Airways.

Alitalia renewed its fleet with 34 new aircraft between 2009 and 2011, while 26 older planes were retired. This renewal process ended in early 2013.

These new planes were leased from Aircraft Purchase Fleet (APF), an Irish leasing company created by Carlo Toto. The majority of the fleet was on the Irish registry instead of the Italian registry.

The fleet was comprised of Airbus and Boeing aircraft, including the A319-100, A320-200, and A321-100. The A330-200 and Boeing 777-200ER were also part of the fleet.

Here's a breakdown of the total number of aircraft in service at the time of Alitalia's closure:

Alitalia's fleet development was a significant undertaking, and the airline's ability to renew its fleet with new aircraft was a major accomplishment.

Alitalia had been a part of the SkyTeam alliance since 2001, with its subsidiary Alitalia - LAI joining in 2009.

Alitalia had a strong partnership with SkyTeam members, allowing passengers to fly to numerous destinations using a single Alitalia ticket.

In 2010, Alitalia joined Air France, KLM, and Delta's transatlantic joint venture, sharing profits from flights across the Atlantic.

On 21 May 2020, Alitalia left the SkyTeam Transatlantic Joint Venture.

Alitalia's loyalty program, MilleMiglia, with over 6,000,000 customers, continued to function independently.

Alitalia has experienced its fair share of accidents and controversies over the years.

One notable incident was the 2005 crash of an Alitalia Airbus A321 in Naples, resulting in the loss of 20 lives.

The airline has also been involved in several controversies, including a 2012 incident where a pilot was arrested for allegedly causing a near-miss with a private plane.

A subsequent investigation revealed that the pilot had been flying the plane manually despite being required to use autopilot.

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Alitalia has experienced its fair share of accidents and incidents over the years. Eight of its flights were hijacked, and 29 aircraft accidents or incidents involved Alitalia planes.

One notable incident was the Airbus Industrie Flight 129 crash, where two Alitalia pilots, Alberto Nassetti and Pier Paolo Racchetti, were killed while acting as passengers. Alitalia dedicated two Boeing 767 aircraft to the lost pilots.

In 1954, Alitalia Flight 451 crashed at New York-Idlewild Airport after striking the pier that supported the runway lights. The crash resulted in 26 fatalities and 6 injuries.

A Vickers Viscount crashed at Rome's Ciampino Airport in 1959, killing 2 people and leaving no survivors. This incident was attributed to a crew check involving a simulated emergency landing.

Here are some of the most notable Alitalia accidents and incidents:

In December 2005, the bankrupt Volare Group was put up for sale, with Alitalia bidding to buy the group alongside Air One and Meridiana/Eurofly.

Alitalia's bid was initially met with opposition from Air One, which claimed that Alitalia couldn't buy Volare Group due to past state aid.

The TAR (Regional Administrative Tribunal) of Lazio attempted to block the acquisition but later abandoned the attempt after Alitalia repaid its €400 million loan.

Air One also went to court but was unsuccessful in its attempt to block the sale.

The Italian Consiglio di Stato (State Council) blocked the acquisition on May 23, 2006, citing unknown reasons.

The TAR court later declared the administrative procedure used to sell Volare to Alitalia invalid but deemed the selling contract still valid.

Alitalia's winning bid of 38 million euros was accepted, and the former Volare Group employees were transferred to Volare SpA, an Alitalia subsidiary, on May 15, 2006.

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Alitalia Cargo was a significant part of the company's operations, established in 1947.

The division became a member of SkyTeam Cargo in 2001, focusing on strategic markets to China, Korea, Japan, and the USA.

Alitalia Cargo operated a fleet of 5 McDonnell Douglas MD-11 freighter aircraft from Malpensa International Airport.

Financial turmoil led to the division being sold off to new owners, ceasing operations on 12 January 2009.

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