This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.theguardian.com/business/2017/sep/20/ryanair-flight-cancellations-italy-worries-alitalia-takeover-bid
The article has changed 5 times. There is an RSS feed of changes available.
| Version 2 | Version 3 |
|---|---|
| Ryanair cancellations raise worries in Italy over Alitalia takeover | Ryanair cancellations raise worries in Italy over Alitalia takeover |
| (about 10 hours later) | |
| Airline’s staffing woes call into question its bid for flag carrier, with transport minister describing situation as ‘very serious’ | |
| Angela Giuffrida | |
| Wed 20 Sep 2017 12.57 BST | |
| Last modified on Wed 20 Sep 2017 13.20 BST | |
| Share on Facebook | |
| Share on Twitter | |
| Share via Email | |
| View more sharing options | |
| Share on LinkedIn | |
| Share on Pinterest | |
| Share on Google+ | |
| Share on WhatsApp | |
| Share on Messenger | |
| Close | |
| Ryanair’s cancellation of thousands of flights across Europe due to a backlog of staff leave has raised alarm bells in Italy over its attempt to buy the troubled flag carrier Alitalia. | Ryanair’s cancellation of thousands of flights across Europe due to a backlog of staff leave has raised alarm bells in Italy over its attempt to buy the troubled flag carrier Alitalia. |
| The Irish airline, which has experienced huge growth in Italy and controls 24.3% of the market, compared with Alitalia’s 17%, made a non-binding offer for its lossmaking rival in July. | The Irish airline, which has experienced huge growth in Italy and controls 24.3% of the market, compared with Alitalia’s 17%, made a non-binding offer for its lossmaking rival in July. |
| But the scrapping of 2,000 flights across Europe, 702 of these to and from Italy, between now and the end of October, has raised questions as to whether Ryanair would be capable of reviving Alitalia. | But the scrapping of 2,000 flights across Europe, 702 of these to and from Italy, between now and the end of October, has raised questions as to whether Ryanair would be capable of reviving Alitalia. |
| With the sale of the airline likely to become a political sticking point as Italy prepares for a general election before May 2018, the transport minister, Graziano Delrio, said the impact of the cancellations was “very serious”. | With the sale of the airline likely to become a political sticking point as Italy prepares for a general election before May 2018, the transport minister, Graziano Delrio, said the impact of the cancellations was “very serious”. |
| “It’s caused a huge amount of inconvenience for Italians and we insist on the absolute respect for passengers’ rights,” he said. “We will monitor the situation, but we can’t make allowances for such a huge amount of disruption.” | “It’s caused a huge amount of inconvenience for Italians and we insist on the absolute respect for passengers’ rights,” he said. “We will monitor the situation, but we can’t make allowances for such a huge amount of disruption.” |
| Last year, Delrio praised Ryanair after it announced plans to invest €883m (£783m) in Italy, creating 2,250 jobs and opening 44 new routes. | Last year, Delrio praised Ryanair after it announced plans to invest €883m (£783m) in Italy, creating 2,250 jobs and opening 44 new routes. |
| Following an outcry from stranded passengers, Ryanair admitted on Tuesday that it had “messed up” on the rostering of staff holidays, leading to a shortage of pilots. The airline said the cancellations were designed to improve punctuality, which fell below 80% in the first two weeks of September. | Following an outcry from stranded passengers, Ryanair admitted on Tuesday that it had “messed up” on the rostering of staff holidays, leading to a shortage of pilots. The airline said the cancellations were designed to improve punctuality, which fell below 80% in the first two weeks of September. |
| But the move has left Italians, already frustrated by the turmoil at Alitalia, doubting the level of service that might be provided if Ryanair’s takeover bid went through. | But the move has left Italians, already frustrated by the turmoil at Alitalia, doubting the level of service that might be provided if Ryanair’s takeover bid went through. |
| Fabrizio Premuti, the president of the Italian consumers’ association, Konsumer, told the Guardian: “Ryanair is a very important contributor to the Italian economy, but they have made a big mistake. | Fabrizio Premuti, the president of the Italian consumers’ association, Konsumer, told the Guardian: “Ryanair is a very important contributor to the Italian economy, but they have made a big mistake. |
| “The shock that the airline has created has left people thinking that we will try to cure a sick flagship company with a medicine that will make it even worse.” | “The shock that the airline has created has left people thinking that we will try to cure a sick flagship company with a medicine that will make it even worse.” |
| Alitalia, which was founded in 1946 and is one of Italy’s biggest employers, went into administration in early May, with the government providing a bridging loan for about six months while a buyer is sought. | Alitalia, which was founded in 1946 and is one of Italy’s biggest employers, went into administration in early May, with the government providing a bridging loan for about six months while a buyer is sought. |
| The government has said there will be no bailout after previously spending about €7bn of state funds to keep it afloat. | The government has said there will be no bailout after previously spending about €7bn of state funds to keep it afloat. |
| Ten companies are reported to have made non-binding offers. If no buyer is found, Alitalia will be wound up, leading to about 200,000 job losses. | Ten companies are reported to have made non-binding offers. If no buyer is found, Alitalia will be wound up, leading to about 200,000 job losses. |
| “Those responsible for selling Alitalia will have to pay close attention and consider the best interests of the country and Italian citizens,” Premuti said. | “Those responsible for selling Alitalia will have to pay close attention and consider the best interests of the country and Italian citizens,” Premuti said. |
| “We need to find a way to ensure that Alitalia stays alive, but with all the guarantees. In this respect, it doesn’t seem as if Ryanair will be able to ensure this.” | “We need to find a way to ensure that Alitalia stays alive, but with all the guarantees. In this respect, it doesn’t seem as if Ryanair will be able to ensure this.” |
| Andrea Giuricin, a transport expert at the thinktank Bruno Leoni, said Ryanair’s treatment of staff could impact public opinion and how the Italian government handles the sale process. | Andrea Giuricin, a transport expert at the thinktank Bruno Leoni, said Ryanair’s treatment of staff could impact public opinion and how the Italian government handles the sale process. |
| “Italy has reacted very sensitively to the Ryanair announcement,” he said. “But regarding the sale, I don’t believe that Ryanair is all that interested in Alitalia. The two business models are completely different. It was perhaps using the process for publicity, which is typical of Ryanair.” | “Italy has reacted very sensitively to the Ryanair announcement,” he said. “But regarding the sale, I don’t believe that Ryanair is all that interested in Alitalia. The two business models are completely different. It was perhaps using the process for publicity, which is typical of Ryanair.” |
| Ryanair | |
| Air transport | |
| Airline industry | |
| Italy | |
| Europe | |
| Mergers and acquisitions | |
| news | |
| Share on Facebook | |
| Share on Twitter | |
| Share via Email | |
| Share on LinkedIn | |
| Share on Pinterest | |
| Share on Google+ | |
| Share on WhatsApp | |
| Share on Messenger | |
| Reuse this content |