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Status of Alitalia Bankruptcy??


Motorcycle Gma
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Anyone know the status of Alitalia? A local person's prospective would be helpful. I've read online they may be going bankrupt and run out of cash as soon as MAY. It is May 15 and I see nothing new. Luckily, our trip isn't until August.

 

I know they've been bailed out at least twice before. I've heard the government is NOT inclined to help them this time. I did NOT know all of this when I booked my trip. What happens if they stop running?

 

I have called Orbitz who tells me it would be up to Alitalia to refund or their partner airlines to rebook me. I do have travel insurance, thank goodness. We travel in August.

 

If others are looking at booking Alitalia, you've been warned!! I wish I had not.

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I'm flying Alitalia Friday night from Boston to Rome to Barcelona for cruise Sunday and will let you know how it goes. Flights appear to be running as scheduled so I'm pretty hopeful we will be ok. my concern is I only have two hour layover in Rome and didn't realize we had to go through passport control during layover. Has anyone done this lately? I called alitalia and they said it should take 50 minutes which is cutting it close if our incoming flight is delayed at all and with my parents who are a little slower these days. Would appreciate any thoughts or advice on the process and time involved!

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Alitalia schedules many of their connections like that, very tight. If your second flight is also on Alitalia they'll have a representative meet your flight and they'll escort everyone from your flight who is going on to the next one through passport control and to the next gate.

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Flying (I hope!) Alitalia in July. Last I heard is that they are in receivership looking for a buyer and have been given a 600 million loan that should last them through the "administration". So hopefully the 6 months takes it through to October.

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If at all possible, I would change any Alitalia ticket I have and rebook with anyone else. Carefully check travel insurance clauses! More likely that you can request a charge back from your credit card company if the flight can't be supplied.

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THank you Euro Cruiser! Both flights are Alitalia. That is great information and makes me feel much better. I didn't think of it, but I hope I don't have to collect luggage too?

 

Alitalia schedules many of their connections like that, very tight. If your second flight is also on Alitalia they'll have a representative meet your flight and they'll escort everyone from your flight who is going on to the next one through passport control and to the next gate.
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No, they'll check your bags through to the final destination.

 

It's an odd habit of Alitalia's. Every time I've gotten off one of their planes in Rome there are several representatives there with signs for various connecting flights. I've brought groups of 40 people through with connections to Catania once, and Pisa another time. It happened both times, and not just for large groups like mine but also for individual travelers.

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We have two ALITALIA flights within Europe in September - due to the reports of their bankruptcy should we rebook with another airline?

 

 

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Personally, I would re-book to another airline. (and that is with 20 years experience as an airline professional under my belt).

Especially if it wont cost you anything (or just a few $), I would not hesitate to change airlines.

Not only is Alitalia in dire straits financially (49% owner and cash camel, Etihad turned off their financial support), but the airline is also very prone to strike action by flying crews and ground staff.

LAST MINUTE flight changes and re-booking to another airline will most likely cost a lot of money.

Uness you have booked domestic flights in Italy, it is unlikely that AZ is your only option.

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Personally, I would re-book to another airline. (and that is with 20 years experience as an airline professional under my belt).

.

Hello,

I also have a booked nonrefundable flight with AlItalia.. The flight is on July 8 , 2017 and it is from WAW to FCO. It is a direct flight and that was the reason why I have chosen that flight over others. It was booked and paid for many months ago.

 

Now, similar to others, I worry if the flight will happen - I do have a cruise the following day.

With your professional experience what can you advise me ? I know you advised the other poster to book another airline for their september flight but mine is July 8 .... does that make a difference ?

I do appreciate your input.

Thank you

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We booked a flight on AZ from YYZ to FCO on July 15, same deal as Wieslaw, paid & non refundable. I do have trip interruption etc as I used Visa, hopefully not will not get to that point. As Buchhalm stated AZ is not the greatest when it comes to strike action. FWIW, from what I've been reading, the Italian gov't has given AZ a 600 million euro loan which should keep it flying for 6 months or to the end of Oct.

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I wouldn`t mind for all flights within the next 3 months. It is very unlikely that Alitalia stops operations without a warning several weeks in advance.

There are many people who try their best to keep at least the operations going and trying to find a new owner.As per my latest info it is vcery unlikely that operations will be stopped at all,but if,they will announce it well in advance.

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Hello,

I also have a booked nonrefundable flight with AlItalia.. The flight is on July 8 , 2017 and it is from WAW to FCO. It is a direct flight and that was the reason why I have chosen that flight over others. It was booked and paid for many months ago.

 

Now, similar to others, I worry if the flight will happen - I do have a cruise the following day.

With your professional experience what can you advise me ? I know you advised the other poster to book another airline for their september flight but mine is July 8 .... does that make a difference ?

I do appreciate your input.

Thank you

 

Knock on wood, a flight within the next few weeks should be OK. The government gave the 600 Million Euro to tie them over and that should last for 3 to 6 months. A concern would be a last minute strike, but than could happen anywhere in the world.

Unfortunately no other airline seems to fly DIRECT from WAW to FCO (or CIA), so you are a bit locked in.

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Personally, I would re-book to another airline. (and that is with 20 years experience as an airline professional under my belt).

 

Especially if it wont cost you anything (or just a few $), I would not hesitate to change airlines.

 

Not only is Alitalia in dire straits financially (49% owner and cash camel, Etihad turned off their financial support), but the airline is also very prone to strike action by flying crews and ground staff.

 

LAST MINUTE flight changes and re-booking to another airline will most likely cost a lot of money.

 

Uness you have booked domestic flights in Italy, it is unlikely that AZ is your only option.

 

 

T

 

 

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Knock on wood, a flight within the next few weeks should be OK. The government gave the 600 Million Euro to tie them over and that should last for 3 to 6 months. A concern would be a last minute strike, but than could happen anywhere in the world.

Unfortunately no other airline seems to fly DIRECT from WAW to FCO (or CIA), so you are a bit locked in.

 

I do appreciate that you responded and gave me a little better 'news'.

Thank you

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I appreciate all the great feedback. Buckhalm, how does one re-book if we are on a non-refundable Alitalia flight?? Won't I lose my $1258 fare?

 

I have insurance, but they are saying they would likely only pay change fees or reimbursement IF and WHEN the flight is cancelled.

 

I am concerned how long that 600 million will last. My dad worked for Braniff airlines many years ago. When they went bankrupt, they were paying $7million a week cash for fuel because nobody would give them credit (this was 35 yrs ago). There was no advance warning; they just ran out of money & stopped flying.

 

I'm trying to be optimistic, but it's hard to make train & hotel reservations not knowing. This may be the one time I actually have to use my trip insurance. :(

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This is one of those risk assessment situations. On the one hand, if you go ahead and book another flight right now you will likely get a reduced fare, but you also have a 100% chance of losing the $1258 you've already spent.

 

On the other hand, if you don't book another flight now there is a risk that you'll lose the $1258 and have to pay the last minute walk up fare for a flight.

 

The risk assessment comes down to what probability you assign to Alitalia defaulting before your flight and the difference between the cost of a second flight purchased now vs. later. Only you can determine what probability you want to assign to the risk. The price gap is a little easier to establish with some certainty.

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"Now that shareholders have voted to enter bankruptcy procedures, Bloomberg explains the next steps for the airline:

A special administrator [will] take formal charge and develop a rescue plan within 180 days, which could be extended for a further 90 days. The plan might entail asset sales, reduced operations and consequently unlimited job cuts aimed at making the airline viable within two years. Alternatively, the person may decide that a turnaround isn’t possible and order the carrier to be liquidated."

Another question is which flights/routes are profitable? Would someone take these flights over, i.e. United taking the New York-FCO and honouring the tickets/ What is killing AZ? Ryanair, Easyjet with low cost short haul? If the administrator reduced operations to AZ's "protected" domestic i.e. within Italy routes and the long-haul i.e. trans-Atlantic or WAW-FCO where the low-cost carriers aren't pushing the revenue down, would trhat make AZ viable?

As mentioned, they have been given a lifeline to "keep them flying" for 180 days as the special administrator looks at options. Obviously the closer you get to October, the higher the risk. We are flying into FCO 4 days before our cruise. If our flight gets cancelled, we will possibly miss our opportunity to spend those days in Rome along with hotel charges (bought on points). Hopefully within those 4 days something can be worked out with out insurance so that at least we don't miss the cruise....Again, don't expect to be affected as we are flying in July.

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Thank you for your feedback. We have rebooked our flight from Prague to Rome with Vueling to ensure we get to Rome for our cruise. The flight after our cruise to Malta is in late September so we will wait and see what the reports about Alitalia are in the next couple of months before rebooking that flight. As it is a code share flight with Air Malta I wonder if Alitalia isn't operating whether AirMalta will take over this flight? We were in USA in September of 2001 flying on United (using points) when ANSETT AIrlines ceased operation and we were not inconvenienced at all. When we arrived into Sydney we were put on a Qantas flight to Melbourne at no cost to us as we were in transit when this happened !

 

 

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Thank you for your feedback. We have rebooked our flight from Prague to Rome with Vueling to ensure we get to Rome for our cruise. The flight after our cruise to Malta is in late September so we will wait and see what the reports about Alitalia are in the next couple of months before rebooking that flight. As it is a code share flight with Air Malta I wonder if Alitalia isn't operating whether AirMalta will take over this flight? We were in USA in September of 2001 flying on United (using points) when ANSETT AIrlines ceased operation and we were not inconvenienced at all. When we arrived into Sydney we were put on a Qantas flight to Melbourne at no cost to us as we were in transit when this happened !

 

 

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're the Air Malta flight.

If the code share is operated by Air Malta (which are most of the flights as far as could see), your AZ ticket should be honoured . I had a similar issue with a Malev (Hungarian) ticket on Lufthansa service once.

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're the Air Malta flight.

 

If the code share is operated by Air Malta (which are most of the flights as far as could see), your AZ ticket should be honoured . I had a similar issue with a Malev (Hungarian) ticket on Lufthansa service once.

 

 

UNfortunately the code share on the Malta flight is operated by ALITALIA ! So we will wait and see what happens with this closer to the date. Many thanks for responding.

 

 

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"Now that shareholders have voted to enter bankruptcy procedures, Bloomberg explains the next steps for the airline:

A special administrator [will] take formal charge and develop a rescue plan within 180 days, which could be extended for a further 90 days. The plan might entail asset sales, reduced operations and consequently unlimited job cuts aimed at making the airline viable within two years. Alternatively, the person may decide that a turnaround isn’t possible and order the carrier to be liquidated."

Another question is which flights/routes are profitable? Would someone take these flights over, i.e. United taking the New York-FCO and honouring the tickets/ What is killing AZ? Ryanair, Easyjet with low cost short haul? If the administrator reduced operations to AZ's "protected" domestic i.e. within Italy routes and the long-haul i.e. trans-Atlantic or WAW-FCO where the low-cost carriers aren't pushing the revenue down, would trhat make AZ viable?

As mentioned, they have been given a lifeline to "keep them flying" for 180 days as the special administrator looks at options. Obviously the closer you get to October, the higher the risk. We are flying into FCO 4 days before our cruise. If our flight gets cancelled, we will possibly miss our opportunity to spend those days in Rome along with hotel charges (bought on points). Hopefully within those 4 days something can be worked out with out insurance so that at least we don't miss the cruise....Again, don't expect to be affected as we are flying in July.

 

Thanks for the great explanation from Bloomberg! Really appreciate it.

 

Our information does say Airitalia operated by Delta. I wonder if that makes us any safer? We are using Delta stateside and then connect to Airitalia in Atlanta or NY.

 

I don't have extra money or miles, so I'm going to wait it out and hope it works out. We have extra days before & after our cruise, so hopefully, we can rebook with the help of our insurance or Delta, if needed.

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