Andy Nativi/GENOA
Alitalia is widening its search for a new strategic partner, and is believed to be talking with US carriers about a possible deal. An accord with either Air France or Swissair seems most likely, however; last week the former confirmed its definite interest.
Alitalia chief executive Domenico Cempella has been crafting a new industrial strategy following the collapse of a partnership with Dutch carrier KLM, and the alliance question remains the key topic on his agenda. Some months ago Cempella indicated that talks will not be restricted to European airlines, and rumours say at least one major US airline is in negotiation.
Air France president Jean-Cyril Spinetta reportedly made several visits to Rome to discuss a possible investment in the state controlled airline. In June, the French carrier's director general, Pierre-Henry Gourgeon, said Alitalia was "of definite strategic interest".
An Air France deal would bring Alitalia into the SkyTeam alliance, and could see partner Delta Air Lines take an equity position. Alitalia also has a close relationship with Northwest Airlines, but the failure of the KLM deal threatens this, and with Continental Airlines.
The size of the Italian domestic market would, on paper, make Alitalia an attractive ally for any major airline, but its new Milan Malpensa hub may face a brighter future with a US tie-up. Milan is an attractive destination for US carriers, giving access to the northern Italy market. The hub currently competes with Paris Charles de Gaulle, home to Air France, and Zurich, Swissair's base, so a European alliance could see it downgraded and Alitalia forced to refocus on Rome.
French sources point out that Malpensa is closer to Switzerland, and claim an Air France deal would raise fewer concerns for Alitalia. Air France and Alitalia signed a deal covering shared flight numbers in 1997, but abandoned it after the latter allied with KLM.
The chairman of KLM's supervisory board, Coen Oort, has meanwhile offered a new insight into the failure of the Italian alliance. "It was not because Alitalia didn't want to go on," he says. "It was the Italian Government's attitude that made it so difficult." Oort identifies the main areas of conflict as uncertainty over the future of Malpensa, the question of who would lead the alliance and complications caused by Italian changes of government, which meant relations had to re-start from scratch. KLM is now negotiating a merger with British Airways.
• Milan airports operator SEA says passenger traffic is booming, and 2000's total could be double last year's . Chief executive Giorgio Fossa says Malpensa has already attracted 20% more passengers than 1999's 12 million, and could hit 24 million. SEA is to be privatised: Fossa confirms that 30% of the company is likely to be floated early next year.
• Air France has reported strong performance in the April-June quarter, despite high fuel costs, with sales up 19.2% to €3 billion ($2.6 billion) and operating profit up 20.2% to €185 million. Revenue per available seat kilo-metre rose 7.1% after foreign exchange effects were discounted, due mainly to a 23% growth in traffic.
Source: Flight International
