Alitalia has abandoned immediate plans to find a European strategic partner and is switching its attention to finding a US partner for a transatlantic deal.
The Italian state-owned carrier's announcement of its planned strategy up to the end of 2004 envisages a "stand alone" plan for the time being. Several senior directors are likely to resign if the scheme is not approved by the government.
Talks, principally with Air France and the SAirGroup, over taking a stake in Alitalia following the breakup of its alliance with KLM last year, are effectively on ice following an announcement that talks with frontrunners SAir Group have stalled.
On the transatlantic front, Alitalia already has a codesharing and marketing tie-up with Continental but as an open skies arrangement between Italy and the the USA moves into place, the Italian airline wants to strengthen its position in the USA. A deal with American Airlines is said to be one possibility. Alitalia has also announced a new codesharing agreement with Varig of Brazil.
Fleet and route changes are also planned, as the loss-making airline concentrates on a return to profit this year. Hong Kong and South Africa services are among the most vulnerable as it reinforces strategic markets like the USA, Japan, France, the UK, and Germany or develops routes in the Middle East and North Africa.
In terms of the fleet, Alitalia plans to spend as much as $3.5 billion introducing smaller aircraft to improve yield and load factors and replacing older aircraft over the next four years.
The scheme calls for an increase in fleet numbers from 166 aircraft last year to 192 by 2004. A company is being set up in Ireland to optimise the financing of fleet acquisition.
Boeing 777s will form the heart of the long-haul fleet as 747-200s and MD-11s are phased out. The 767 fleet will also be bolstered.
In addition, 15 Airbus A-319s will be introduced by 2004, and the Embraer ERJ-145 regional fleet will be increased from 6 to 14.
Source: Flight International
