The airlines knew it would be difficult, but it’s fair to say that they didn’t think it would be that difficult. With the credit crunch in full swing, finances have tightened along with pre-planning for volatile oil prices and contingencies are simply not enough. Conservatives have also warned that they will not back the airline industry to the top and that planning decisions are likely to be stricter in the future. It appears to be an unfortunate moment for BAA following the decision that they must reduce their dominance over airports in the southeast.
After Alitalia filed for bankruptcy protection, Italy’s national airline has faced turbulent times with flights suspended by ENAC and rescue plans are not available. It is not only the fact that the airline is in financial difficulties, but it also has an impact on tourism and the respectability of the country, as the prime minister has continued to call and rally wealthy Italian businessmen to save a losing airline. over 3 million dollars. one day.
British Airways Plc has been on a cost reduction program. Some positive, others not so much. The good news is that BA has decided to pass the savings on to consumers by reducing the fuel surcharge following the recent drop in crude prices. What was not well received were ideas to reduce the number of top managers by offering incentives to 2,000 managers in an attempt to reduce their salary expense and increase profitability.
Ironically, it is the two airlines most in the news for bad press that have shown interest in forming an alliance, as BA aims to consolidate its own position within the European market. According to a report yesterday, BA CEO Willie Walsh, the new investors in the CAI investor group of the Italian national company, was close to making a decision in the form of a business deal.
BA is not the only airline seeking the deal, as some of its closest European rivals – Air France-KLM and Germany’s Lufthansa – have expressed interest with newspaper reports in Italy indicating that Lufthansa is the favorite to acquire one. 20% stake in Alitalia.
