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Alitalia to ITA?

Posted by (Freedonia) on

We all know that Alitalia is going under and ITA will take its place.

The question is.....what's going to be the difference. Except of paper, where one company folds and another starts where is it going to be different?

ITA needs employees and the Alitalia people are experienced and in place. Problem solved. ITA will need planes. Hmm..where would be a good place to get them locally? (Hint--Alitalia).

And now I just read that ITA negotiated to buy the rights to use the Alitalia name.

So what is going to be the real difference to the passengers? Still poor management? Still lots of lost bags?

Posted by
12010 posts

And now I just read that ITA negotiated to buy the rights to use the Alitalia name.

Saves them the expense of having to re-paint the planes?

Puzzled why the name "Alitalia" would be considered an 'asset'.

Anyone want to buy the name "Enron"?

Posted by
16168 posts

The brand Alitalia means name recognition, hence the intangible asset value.

Regarding the main difference between the two, is the fact that the discontinuity between the two corporations was a condition to pass the approval by the EU Competition Authorities.

Other differences are:
1. The newco will be much smaller than Alitalia (2800 employees to start instead of the current 11000 with Alitalia)
2. The newco will not be assuming the old Alitalia employees in a turnkey transition. That means, among other things, that the Alitalia employees will need to apply for the positions, as they will not be transferred to the new company automatically. So far 30,000 resumes have been received by ITA (many current Alitalia employees) but only 1/10 will be hired. Chances are that some Alitalia managers will be hired, but those Alitalia employees who are known for being slackers (for years protected by the powerful labor unions) will not have a job and in fact the labor unions already announced strikes (before even the start of the company).
3. One thing will not change. Within a few years ITA will also accumulate losses and we will be starting again from square one in a short time.

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