Alitalia, symbol of a business failure, about to close after 75 years of history.

ITA, the new airline that rises from the ashes of Alitalia, began its activity this Thursday with the sale of tickets.  It will take off on October 15, just the day after the former flag carrier, Alitalia, founded in 1946, whose bankruptcy is the result of a serious crisis, which has lasted for a quarter of a century, ceases its activities. , with bad business management and waste of public money.

The new public company that replaces Alitalia has activated the website www.itaspa.com, with the sale of tickets for flights from October 15.  For Alitalia customers with purchased tickets, the old company offers a double option: replace the flight with an equivalent flight departing before October 14 or request a full refund of the flight price.

Drastic cuts

The European Commission has had to approve the viability plan of the new company, having public funds.  ITA will not take off with the wind in its favor, because the union front is very hot.  The transfer of workers from the old to the new company is pending, with salary cuts and drastic reduction of jobs.  ITA will start operations with 2,800 employees.  Alitalia currently has 10,500 employees.  As explained by the new company in a statement sent to the unions, the Business Plan provides that the company can "subsequently increase the initial workforce", until "reaching the total maximum number of approximately 5,750 employees in 2025".

The Plan is being highly contested by the unions, because the numbers of staff cuts are traumatic.  Criticism from left-wing parties is also strong.  The economist Stefano Fassina, deputy of Libres e Iguales, has commented: "Between 7,000 and 8,000 layoffs are expected, the majority in Rome, and hiring in conditions inferior to the treatment applied by low-cost companies."

Tense and tough negotiations

In view of the cuts, negotiations between ITA and the unions are tough and tense.  Pilots, the heart of the company, will be reduced by almost 63%.  Of the current 1,357 pilots that Alitalia has, the new company wants to have about 490, respecting their salaries, but with reduced holidays.  Flight attendants, who at Alitalia number 3,227, will increase to around 1,060 in the new company, with a salary cut between 20-30%.  The model will be that of the low-cost company EasyJet, the unions shout.

While the tug of war between the company and the unions continues, no one dares to raise the bells about the future of the new company.  The Minister of Economic Development, Giancarlo Giorgetti, politician of the League and key in the Draghi government, has commented: “ITA was born with the will of the government to make it fly with its own wings, by being endowed with an economically sustainable structure.  But nobody has the crystal ball.  Alitalia - adds the minister - had gone bankrupt.  The rules by which the State can exceptionally act as a company are established by the European Commission ”.

Symbol of a failure

The sad end of Alitalia is about to come, after 75 years of history.  The Arabs (Ethiad, airline of the United Arab Emirates), the French (Air France), the Dutch (KLM), as well as successive governments that tried to privatize it, after half a century of absolute state control, tried to refloat it without success.  No one managed to save her.  During the last 25 years, crises have occurred in the flag carrier.  Alitalia became the symbol of the business failure of the transalpine country, due to its management and waste.  Alitalia's death was announced and it was inevitable.