WTI Magazine #33    2014 June, 4
Author : Francesca Papasergi      Translation by:

The Italian national airline, Alitalia, was born in Rome in 1946 and, for a long time, it was one of the best airlines in the world. Its pilots and its elegant flight assistants are still considered an Italian excellence. What happened to that perfect machine?

It was not perfect at all: the uneconomic management and the debts brought the company on the brick of bankruptcy.

In 2006, the former Prime Minister Romano Prodi tried to sell the company to Air France. The negotiation took months and seemed to be addressed to a fair conclusion. Instead, it failed.

While the government's efforts were aimed to a fruitful sell, Mr. Berlusconi insisted on the necessity to maintain the "Italianity" of the company and found some Italian entrepreneurs to buy it, and unexpectedly he won the match. Alitalia kept its trademark but it became Compagnia Aerea Italiana in 2008.

The "Italian network" paid it less than Air France had offered; in addition, the "bad company" was burdened with all the losses, that eventually were billed to the Italian people. A lose-lose situation for everyone in the country but the "Italian Network" itself.

CAI is failing itself, and Etihad (the flag carrier airline of the United Arab Emirates) is on its way to acquire almost half of it. The unions aren't keen on this solution: the risk of a large layoff is high. At the same time, Alitalia needs the operation to survive this crises: Etihad or not, it takes a reorganization.

Maybe Italians won't keep their company but, sometimes, it's better when business overwhelms an absurd and counter-productive patriotism.