Arab Today, arab today rome fire burns into alitalia turnaround cash
Last Updated : GMT 21:54:28
Arab Today, arab today
Arab Today, arab today

Rome fire burns into Alitalia turnaround cash

Arab Today, arab today

Arab Today, arab today Rome fire burns into Alitalia turnaround cash

Alitalia lost 136 million euros in the first six months of this year but Chief Financial Officer Duncan Naysmith said this was slightly better than projected under a plan to bring Alitalia to profit by 2017
Rome - AFP

Alitalia said Tuesday it had lost 80 million euros as a result of a fire at Rome's main airport in May but insisted its recovery plan remained on track after the abrupt departure of its chief executive last month.

The loss-making carrier, rescued from the brink of collapse by Etihad Airways at the end of 2014, said the fire at Fiumicino airport had resulted in significant loss of revenue and additional costs which the company would be looking to reclaim.

"Our exposure from the fire is in excess of 80 million euros," Etihad chief executive James Hogan said. "We are compiling our dossier and when the relevant authorities decide who was at fault we will submit our claim."

Alitalia chairman Luca di Montezemelo stressed that the airline was not blaming the airport operator ADR for the fire that partially destroyed the biggest international terminal at Fiumicino and disrupted traffic throughout the peak summer season.

"This is something that needs to be sorted out with insurance companies," the former Ferrari Formula One team boss said.

Di Montezemelo is acting as chief executive following the shock resignation of Silvano Cassano last month "for personal reasons".
Hogan said a search for a replacement was underway and confirmed he was now spending one week a month in Italy overseeing a revamp of the airline's offer to customers and its financial and organisational operating systems.

It is a move industry watchers have interpreted as a sign all is not going as well as Etihad hoped when they saved the Italian company by taking a 49 percent stake and leading a restructure which eliminated its debts.

Alitalia lost 136 million euros in the first six months of this year but Chief Financial Officer Duncan Naysmith, one of the Etihad executives parachuted into the company, said this was slightly better than projected under a plan to bring Alitalia to profit by 2017.

"We have been hit by the fire and by the loss of a profitable route to Venezuela but we have compensated with cost cuts and efficiencies that will bring 180 million euros of savings in 2015. We will deliver profitability in 2017. "

Hogan acknowledged Alitalia still had room for improvement in terms of load factor -- the proportion of seats sold -- and average fares.

"Phase one is done but now we have to move on to phase two right away," he said. "The foundations are there but we are trying to build a house which takes time."
Hogan said there had been signs of a new pricing system introduced by Etihad having a positive impact in the third quarter of the year while De Montezemelo said the load factor had reached 83 percent in the three months to the end of September.

Taking Alitalia upmarket and being able to command premium fares from the business and super rich segments of the international market are central to the Gulf carrier's strategy for the Italian group.

But it also needs to compete in the long and short haul tourist markets and these areas appear to be giving cause for concern.

Long parts of Tuesday's press conference were given over to complaints about the Italian government's failure to deliver on promises to boost promotion of Italy in countries where Alitalia operates services and about alleged preferential treatment for budget airline Ryanair at Bari airport in southern Italy.

The company announced new services from Rome to Santiago in Chile from May next year and to Mexico City from June 2016.

It also said it would be extending the provision of wi-fi facilities to its entire fleet. Passengers can currently only access the Internet on some long haul flights.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today rome fire burns into alitalia turnaround cash Arab Today, arab today rome fire burns into alitalia turnaround cash

 



Arab Today, arab today
Arab Today, arab today Saudis await visitors but will they come?

GMT 11:54 2017 Thursday ,23 February

Saudis await visitors but will they come?
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today Blind sheikh buried in Egypt

GMT 06:32 2017 Thursday ,23 February

Blind sheikh buried in Egypt
Arab Today, arab today Media host Mona Iraqi stresses her show's success

GMT 15:32 2017 Wednesday ,22 February

Media host Mona Iraqi stresses her show's success
View News in Arabic - Business: قضايا ساخنة
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today To hold social dialogue over secondary school

GMT 07:43 2017 Wednesday ,22 February

To hold social dialogue over secondary school
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Salma Rashid happy for 'A Whisper of Love'

GMT 05:19 2017 Tuesday ,21 February

Salma Rashid happy for 'A Whisper of Love'
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 06:41 2017 Monday ,20 February

Janat pleased for issuing 'Good Morning'

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 14:29 2017 Monday ,20 February

Prepares to present her new collection

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 07:51 2017 Wednesday ,22 February

Mom's immune system accepts babies

GMT 17:46 2017 Saturday ,18 February

Tourist guide reveals methods of tourist attractions

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday