ALITALIA IS PUSHING for the charter operations of Air Europe Italy and Eurofly to be merged into a single airline, in an effort to prevent a damaging fare war between the two carriers.
The move has been prompted by Eurofly's plans to enter long-range charter markets served by Air Europe, as the Italian flag carrier has an interest in both airlines.
Alitalia president Fausto Cereti has confirmed that talks are taking place with Air Europe, although a merger has not yet been approved. It is understood that the most likely option would involve Air Europe buying Eurofly - particularly as the cash-strapped Olivetti group, which owns 45% of Eurofly, is known to be keen to dispose of non-strategic assets.
Building up a new charter airline through merger or acquisition is seen as sound, as the two airlines service different routes and can easily be combined, gaining a volume of traffic and revenue which could allow them to compete head to head with major European names.
In 1995, Air Europe had a turnover of L275 billion ($181.6 million), 26% higher than for the previous year, while Eurofly posted a L117 billion turnover. Air Europe, is owned by Finflight (56.9%), Alitalia (24%), and Sopaf (18%). Eurofly is owned by Alitalia (45%), Olivetti (45%) and banking group San Paolo (10%).
Source: Flight International
