Within three years from the above purchase, the Arabs wanted to wipe the political interference as well in the work carrier, to improve the deplorable financial management and to renew the very old fleet. The training sessions for all staff were pressingly intensified.
When in 2014 Etihad Airways bought 49% of the Italian carrier leaving the Italians 51%, it had big development plans.
Firstly, it wished to expand the routes, reducing the intra-Italian work.
At the same time, it had goals and an inflight and in the airports service of extremely high quality.
Within three years from the above purchase, the Arabs wanted to wipe the political interference as well in the work carrier, to improve the deplorable financial management and to renew the very old fleet.
The training sessions for all staff were pressingly intensified.
Unfortunately from 23.5 approx. million passengers carried in 2014, last year, 2016, had a decrease of about 500,000 fewer passengers.
For this reason the load factor remained at approximately 75%, while the major competitor Ryanair, reached 95%.
The competition, though, which dramatically harms Alitalia is the domestic flights, where it is fighting hard, unequal and detrimental to Low Cost Carriers (LCC), spending about 18% more on fuel & leasing.
This is because “the old sins” do not allow advantageous negotiation with the lessors.
Certainly, at the same time, wrong decisions are included of the company of Abu Dhabi to create a network of disparate air to compete its true rival Emirates Airways with a carryover of the passenger traffic at Abu Dhabi
Of course the low cost airlines override other parameters, such as overnight accommodation of crews in accordance with the applicable provisions, which damage them catalytically.
Finally the "subsidiary" is dying daily, it flies with a one way ticket.
What will the mother company do?
Will it continue the unequal battle, or will it sell further more with large loss what it dreamt as a profitable business?
We are confident based on our long-standing involvement in the field of AVIATION that it will soon sell, taking a serious lesson from this size risky business project.
Emmanuel A. Gyzis is managing partner of Emmanuel A. Gyzis & Associates Law Offices.
He was born in Athens, Greece, 13 January 1947; admitted to Athens Bar Association 1974. Education: University of Athens, Law School (1972), London, (L.LM. 1980), specialized in Aviation Law and originally worked in the respective field on behalf of British Tour Operators and Charter companies.
With longstanding journalistic and writing activity, his articles have been published in financial newspapers and magazines specialized in Aviation and Tourism. Author of pioneering monographs on the development issues of Olympic Airways (1989), he has published during a course of many years, a series of articles regarding its viability, its position in the international environment, as well as for other private airlines in general, while at the same time he participated in relevant International and Greek Conferences and Organizations. Successful and long-term engagement with issues regarding private airports / heliports, Low Cost Carriers (LCC), Aircraft Fractional Ownership, Ground handling matters. At his law firm “EMM. GYZIS AND ASSOCIATES”, together with a group of specialized associates he deals mainly with aviation law issues (cooperation with construction companies for commercial aircraft and leasing companies) and tourism law issues, specializing in mass tourism from/ to Greece and occasionally cooperating with Tour Operators. Since 1993, he has founded a number of Greek and foreign airline companies, on behalf of his clients, in accordance with the applicable legal status. He has participated in committees for the drafting of legislation regarding air transport, such as private airports, the Presidential Decree for private heliports and the Basic Legislation of the Aviation Code and he is the General Secretary of the Hellenic Aviation Society. For many years, he has been studying emerging markets, as a consultant for foreign companies, which plan to invest worldwide.
LANGUAGES: English.
MEMBER: Athens Bar Association, International Bar Association, European Society of International Law (ESIL), American Society of International Law (ASIL), British-Hellenic Chamber of Commerce, Greek-American Union, Hellenic Aviation Society.
PRACTICE AREAS: Aviation Law, Aerospace Law, Tourism and Transport Law, (European) Commercial and Company Law. Arbitration. Establishment and Operation of foreign companies in Greece. Project Finance. Free Movement of Capital. Privatization. Foreign/ Hotel Investments. Mergers and Acquisitions.
