Following the high-profile drubbing of lessors and their products by Malaysian Airlines Group (MAG) last week and the threat to fold Malaysian Airlines and move all the assets into Firefly, the CEO Izham Ismail reaffirmed on Saturday that the group would have “no choice but to shut it down” if lessors decide against backing the restructuring plan. However, the bulk of aircraft and engine lessors have collectively stated that they will continue to challenge MAG’s plans. Will the Malaysian government now blink first in this stand-off? They may have to if they want to save their flag carrier (again).
Meanwhile, the Italian government has signed an Air Transport Decree to establish a new airline called ITA, currently referred to as “Newco”. This action follows attempts to find new investors in Alitalia that ended in failure. Italian Transport Minister Paola De Micheli stated: “A national airline is born that will play a leading role on the European and international market.”
The new airline will have Fabio Maria Lazzerini as chief executive (CCO of Alitalia) and Francesco Caio as chairman. Caio was CEO of the Italian postal service and is currently chairman of the Board of Directors of Saipem. Alitalia will switch to the Newco board from early 2021, and in the meantime the Newco board are negotiating with unions about the future.
To be blunt though, this is all a bit silly. Most of the management is Alitalia; the aircraft are Alitalia; and the Newco board has already rejected a low-cost airline structure! Newco is in effect nothing of the sort – it is a full service carrier with the same union problems carried over from Alitalia, and the only way this airline can be re-branded is if all the Alitalia aircraft go in for re-spray and interior re-fit at enormous cost right when revenue has totally collapsed. There is only one way this Newco can succeed – if the Italian government are going to use the pandemic as a cover to layoff the bulk of, or all Alitalia staff and then rehire some back for Newco on new non-unionised contracts. If that were to happen, the new airline might just be a success; but can you see that happening in Italy at this time of crisis? Minimal rebranding by taking the Alitalia logo down to ITA but keeping the livery seems to be the way to go. We shall see if logic prevails.