NORWAY: Norwegian Boeing 737 Sustains Hydraulic Failure, Lufthansa In Talks With Norwegian

A Norwegian Air International Boeing 737-800, performing flight D8-6241 from Keflavik - Iceland to Madrid - Spain with 152 people on board, was enroute at FL350 about 20nm north of Belfast International - Northern Ireland when the crew reported a hydraulic failure and decided to divert to Birmingham,EN (UK).

The aircraft landed safely in Birmingham about one hour later.

The aircraft stopped on the runway, emergency services foamed the aircraft when a hydraulic leak was seen from the left main gear.

The airport reported the aircraft diverted due to hydraulic failure. Flights were suspended for about 4 hours as result.

The airline reported a techncial issue.

Meanwhile, Lufthansa’s CEO Carsten Spohr told German newspaper Suddeutsche Zeitung: "There's a new wave of consolidation approaching. That means we are also in contact with Norwegian.

International Consolidated Airlines Group PLC could face a tough battle if it were to bid for Norwegian Air Shuttle after the boss of Deutsche Lufthansa said the German airline was interested in making a bid for the low-cost airline.

Lufthansa’s CEO Carsten Spohr said In Europe, everyone is talking to everyone. There's a new wave of consolidation approaching. That means we are also in contact with Norwegian.

He added: Takeovers are always a question of strategic value, the price and anti-trust. There are no easy answers.

IAG - the owner of British Airways, Iberia and Aer Lingus - bought a 4.6% stake in Norwegian in April and has made two offers for the airline, both of which were rejected.

The spokesperson for Norwegian said: Norwegian confirms that it has received enquiries from several parties following IAG’s acquisition of shares in the company.

These parties have expressed indicative and preliminary interest in share acquisitions, mergers, structured transactions, financing of the group and various forms of operational and financial cooperation, the spokesman said.

Norwegian believes that interest from several parties demonstrates the attractiveness of our business, he added.

Norwegian carries more than 30mln passengers a year, including 5.2mln from the UK following a rapid expansion with flights costing as little as £99 one-way to New York.


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ITALY: Alitalia Reveals New Uniforms, Might Be Dressing Up For Their Funeral

Alitalia unveiled its new Flight Attendant uniforms today at the opening of Milan’s Fashion Week.

This new collection, albeit heavily criticized by industry analysts, stems from numerous requests from the airline’s crew who have complained of comfort issues, as well as operability from the current uniforms.

Alitalia revealed its current uniforms less than two years ago, following Etihad’s investment in the Italian carrier.

According to the airline, the new uniforms have been designed by the Italian stylist taking into consideration the advice and suggestions of current Alitalia staff.

The idea of bringing the creativity, elegance, and quality of our country in the world, on board Alitalia, makes me very proud, said the designer.

I am happy to present this project during Milan Fashion Week in such an official setting as Palazzo Reale in Piazza del Duomo, she added.

Italian Fashion Designer Alberta Ferretti presented the new uniforms, which were described to be elegant and timeless.

The new design for both male and female Flight Attendants are composed of a suit and dress, both made of a fresh blue wool, a no season fabric with a thin and breathable texture that ensures comfort and allows for freedom of movement during the flight and on the ground.

Each piece is personalized with buttons, all of which come engraved with the Alitalia “A” in satin gold.

The women’s dress comes with a waistband that’s designed with the three colors of the Italian flag, as well as with the airline’s logo.

The uniforms include cotton poplin shirts with a small pocket, a scarf, and silk tie for all male Flight Attendants. Leather gloves and pure wool knitwear are also part of the new accessories.

For the onboard service, a vest and apron-style dress in an Alitalia-branded jacquard fabric complete the new uniform’s design.

The collaboration with Alberta Ferretti gives prestige to Alitalia, said Fabio Maria Lazzerini, Alitalia’s Chief Commercial Officer and Revenue Management.

The new uniforms are a recognition of the work of thousands of colleagues who every day carry out professionally a crucial task for each airline: ensuring that passengers experience a unique travel experience in the name of quality. For this reason, we felt it was our duty to guarantee maximum comfort and well-being in their daily activities, he added.

However, last week during the IATA AGM in Sydney, IAG’s CEO, Willie Walsh, said that it was madness for Alitalia to be spending on new uniforms while on bankruptcy.

These new uniforms will cost them €7 million. It’s madness, Walsh said.

And Peter Harbison, Executive Chairman at CAPA, quickly added that the airline might be dressing up for their funeral.

Internal sources hint that Alitalia’s real reason for switching their uniforms is that Etihad asked them to remove any resemblance to the Abu Dhabi-based carrier’s design.

The current state at which Alitalia is immersed in has driven the Italian government to evaluate further emergency funding to keep the airline afloat.

However, during the IATA AGM, Lufthansa’s CEO, Carsten Spohr admitted being interested in taking over the airline and adding it to its successful portfolio of carriers.

Lufthansa’s stake in Swiss, Brussels, Austrian, and now Eurowings have proven to be successful, with all airlines turning profits and increasing their footprint both in Europe and the world.

Spohr challenges that the Italian government needs to come up with a viable decision for the airline. Alitalia needs to be restructured before we can do something, he told Italian journal, Corriere della Sera.

Just like Swiss and Austrian Airlines show, when we come into play, companies start making profits, he said.

Spohr also noted that he won’t be putting any pressure on the Italian government. But he confirmed that without a proper restructuring, there will be no investment in the airline.

In all modesty, we’re not Etihad. We will only invest after the airline is restructured. Not before, like they did, he emphasized.

Spohr is a firm believer that Alitalia would be would be a great addition to its group, with Rome becoming its fifth hub in Europe after Frankfurt, Munich, Zurich, and Vienna.

With the new Italian government just established, Alitalia’s agenda is still undefined.

As the country transitions into a new alliance government and other political issues are addressed, Alitalia’s losses continue to drive the airline into a steeper crisis.

And while the new uniforms are introduced to the airline’s extensive network, time and money might be running out at a pace that might exceed any expectations from both the government and the airline itself.


Tourism Observer

ITALY: Alitalia Becomes A Significant Political Issue, But Progress Is Being Made In In Buying The Airline

The Italian Government has confirmed receiving three offers to buy the insolvent airline Alitalia, not giving any details regarding these proposals or bidders.

easyJet said on April 10, 2018, easyJet has submitted a revised expression of interest for a restructured Alitalia, together as part of a consortium, consistent with easyJet’s existing strategy for Italy.

Given the nature of the process, the content of the expression of interest is subject to confidentiality, the airline said in a statement and clarified that further updates would be provided in due course.

Lufthansa also presented new plans and ideas of what the German carrier would convey as a New Alitalia.

On top of Lufthansa, a US investment fund in the name of Cerberus Capital Management is also in the list of potential investors who are interested in acquiring some aspects of the carrier.

Alitalia has supposedly had interest from the Air France-KLM group, although they have vividly denied such claim.

The initial report said that the group was going to provide a joint bid with easyJet, but updated plans now show that this is not the case anymore.

Alitalia went into Chapter 11 in May 2017, and the deadline for bids was set on October 16th, 2017 initially.

However, this had been delayed due to current consultations with the political parties in Italy regarding the sale of the airline.

In terms of repayments of bridge loans, these have also been delayed as state commissioners need to weigh up the bids given by the interested airlines.

The mandate of such commissioners is due to expire by the end of the month, thus putting pressure on the commissioners to make their minds up about the bids.

Although progress is somewhat evident, there is still an issue with the airline’s internal affairs.

With Alitalia being a massive problem within Italian politics, the system itself is also in crisis. The national election which took place in March resulted in a hung parliament.

Political parties have not come together yet to form an overall minority government, which could potentially extend the deadlines further if no decisions are made.

At the moment, with the political parties being notified about updates, a deal may not be made until the government is formed and solidified following such a hung parliament.

Even before the hung parliament occurred, the demise of Alitalia became a significant political issue.

With the government not being able to keep to deadlines and making a decision towards the sale of the ill-fated carrier, a decision must be made in the short-term to keep the airline fully operational.

Overall, the Alitalia/Italian Government situation is going to put significant pressure on the parties involved to push for a collective solution that will benefit all parties.

Seven new envelopes last year arrived at the Alitalia Administrators office in Rome with binding offers from interested investors.

The Italian carrier released a statement saying that these offers will be analyzed to determine whether they meet all the criteria to move forward.

Currently, Lufthansa and EasyJet remain in pole position to acquire the assets of the bankrupt Italian carrier.

According to a story published in the Italian newspaper Il Sole 24 Ore, the German group is interested in taking part of Alitalia’s assets, including its fleet, slots, and some of its crew, and might have a plan to re-launch Alitalia as an all-new airline.

Lufthansa, who recently took over the majority of Air Berlin’s assets, would be interested in acquiring Alitalia’s global network, including their point-to-point slots in both the domestic and regional markets.

The German carrier’s CEO, Carsten Spohr, said on Thursday that Lufthansa would be interested in taking over Alitalia only if it were possible to make a fresh start with it.

Spohr added that if there were a chance of creating a new Alitalia, as Europe’s number one (carrier) Lufthansa would certainly be interested in the talks.

Lufthansa’s initial offer, however, was deemed too rough by the Italian airline, given that it proposed a cut of at least 50% of Alitalia’s workforce—unacceptable for both the Italian government and the carrier.

EasyJet, on the other hand, would be interested in taking some slots and several aircraft.

The low-cost-carrier released a statement stating that they have submitted an expression of interest in certain assets of a restructured Alitalia, consistent with easyJet’s existing strategy for Italy.

Given the nature of the process, the content of the expression of interest is subject to confidentiality.

There is no certainty at this stage that any transaction will proceed and easyJet will provide a further update in due course if and when appropriate.

With today’s announcement, five more parties are bidding to take some assets from Alitalia. Seven envelopes have been delivered today at the Atlante Cerasi associate notary’s office in Rome.

The special commissioners of Alitalia will now begin evaluating the envelopes, said Alitalia in a public statement.

As of today, Alitalia has received over €1 billion of the capital injection by the Italian government.

This has created some controversy, as the Italian taxpayer continues to fund a failing airline that hasn’t shown any signs of getting back on a profitable path.

The head of the powerful industrial employers’ federation Confindustria, Vincenzo Boccia, said that we will need to see who buys it and who pays for it.

I do not think Italian citizens are willing to accept paying for on behalf of and in the name of others. Alitalia needs to be competitive and appeal to investors, he said.

Even though Alitalia filed for Chapter 11 in May, the airline’s operations remain stabilized.

Now that seven binding offers have been received, a long road ahead of negotiations and internal discussions will determine the path of the ill-fated airline.

The Italian government has extended the deadline to receive improved bids and loaned an additional €300 million so that the airline remains operational.

New routes, and a new plane, are about to join Alitalia despite its financial woes.

On September 1, the airline took take delivery of its first Boeing 777-300(ER). The ex-Air Austral Triple-Seven will be deployed on the airline’s flights from Rome (FCO) to Buenos Aires (EZE)—one of the most profitable and busy routes in Alitalia’s network.

According to Routes Online, the aircraft will begin scheduled services to EZE on October 30, 2017.

Moreover, Alitalia launched three weekly flights to the Maldives on the last day of October 2017.

The departing flight out of FCO will leave at 21:45 and arrive the following morning at Male International Airport (MLE) at 11:05 every Tuesday, Friday, and Saturday.

Similarly, New Delhi (DEL) will be linked to Rome on a daily basis starting on October 29, departing FCO at 14:40 and arriving in DEL at 02:40.

Today, Alitalia has a fleet of 22 Airbus A319, 42 A320, 12 A321, 14 A330-200, 11 Boeing 777-200(ER), and one 777-300(ER).


Tourism Observer

Low Oil Price Sends Lufthansa Profits Soaring

German airline Lufthansa said on March 17 that low oil prices and booming passenger business sent profits soaring in 2015, a year marred by the Germanwings crash and drawn-out industrial action by pilots and crew.

Lufthansa chief executive Carsten Spohr described last year as an “emotionally challenging year” due to the crash of a passenger jet in March belonging to its low-cost subsidiary Germanwings, killing all 150 people on board.

“2015 was a very, very sad year. It was a year of extremes,” he told the group’s annual earnings news conference.

“Emotionally, it was the most difficult in the company’s history, but at the same time, it was one of the best in Lufthansa’s financial history,” Spohr said.

In addition to coping with the fallout from Germanwings disaster, the German carrier also battled two long and bitter separate industrial disputes with pilots and cabin crew over pay and pension provisions, during which there were repeated walkouts, including a record seven-day stoppage in November.

At the core of both disputes is Lufthansa’s declared strategy to keep pace with budget rivals by trimming personnel and labour costs.

Nevertheless, “2015 was a good year in economic terms,” Spohr said.

Net profit soared to 1.7 billion euros ($1.9 billion) in 2015, from just 55 million euros a year earlier.

Underlying or operating profit grew by 55.2 percent to 1.8 billion euros and revenues were up 6.8 percent at 32.1 billion euros.

“The doubling in the passenger airlines’ result is not only due to lower fuel costs, but also to the favourable developments in our passenger volumes and to our capacity discipline,” CEO Spohr said.