Alitalia – The final, final rescue *

The existing Alitalia will cease to exist from 15 October.

A new airline has been created, ITA, owned by the Italian Finance Ministry, which has written off Alitalia's remaining debts and pumped in about €700m in start-up funding.

ITA (Italia Trasporto Aereo) agreed to buy a number of Alitalia aircraft, slots and other assets to start as a new state-backed carrier.  This follows a tumultuous history that dates back to 1946. (See BTN 19 July More Euro Money for Alitalia.)

The new operator says it will emerge much smaller than Alitalia, with just 52 aircraft, but plans to gradually grow the fleet again in the coming years.  It will ditch Alitalia's frequent flyer programme and contract out for a new one.  As with many other carriers it will also outsource other functions such as ground handling and maintenance and will begin with a much smaller workforce.

ITA will concentrate on domestic and European routes and will keep flying to a few profitable long-haul route destinations in the US and Japan.

"The long-haul market means privileging the North American market which is under-served and extremely profitable, but further expansion is needed," said ITA CEO Fabio Lazzerini.

"South America is to be kept on standby; we have to think about Asia and China, while Japan is doing very well."  

ITA is already the name of a start-up Brazilian airline (IATA 8I).  It is assumed that the term Alitalia is part of the backroom activity, typically its two-letter code (AZ) and IATA membership.  

Lazzerini says airline alliances will be key to its success. Alitalia was a member of Sky Team Alliance.

www.itaspa.com

www.voeita.com.br

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Douglas Brown, Rome

One thing for sure. If it is called Alitalia or whatever they will be back for more money!