The airlines knew it would be difficult, but it’s fair to say they didn’t think it would be that difficult. With the credit crunch in full swing, portfolio strings tightening along with volatile oil prices, pre-planning and contingencies just aren’t enough. The Conservatives also warned that they will not back the airline industry to the end and that planning decisions are likely to be tougher in future. It seems to be a sad time for BAA after the decision that they must reduce their absolute control of the airports in the southeast.
After Alitalia filed for bankruptcy, Italy’s national airline has faced turbulent times with flights suspended by ENAC and rescue plans not submitted. 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 national, as the prime minister has continued to call and gather wealthy Italian businessmen to save an airline that is at a loss. over 3 million dollars. one day.
British Airways Plc has been on a cost cutting 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 oil prices. What did not work well were the ideas of reducing the number of senior managers by offering incentives to 2,000 managers in an attempt to reduce their salary bill 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 seeks to consolidate its own position within the European market. As reported yesterday by the executive president of BA, Willie Walsh, the new investors in the investment group CAI of the Italian national airline, closed a decision to reach a commercial agreement.
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 news reports in Italy indicating that Lufthansa is the favorite to acquire a stake in the 20% at Alitalia.
