Italy Plans To Nationalize Alitalia In June, Consider Leaving SkyTeam For New Alliance

by Gary Leff

alitalia plane
Apr 24 2020

Italy has been pumping cash into perennial loss-maker Alitalia for years, despite European Union rules against subsidizing a national carrier. Other airlines have burned through capital with ownership stakes in the airline – Air France and Etihad – but they’ve been burned and other carriers were gun shy to take over given losses of 2 million euros a day even before things began going down hill for the entire aviation industry.

The Italian government wouldn’t stand up to the airline’s unions, and without lowering costs no one was willing to come to a deal to take over the failed airline. Now they’re going to nationalize the carrier and they claim that will make it profitable. They will also consider dropping their partnership with Delta.

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Airport Uses A Bulldozer To Block Virgin Australia Plane From Departing

by Gary Leff

Apr 24 2020

While Deloitte, as administrator, seeks to find new money to restart the carrier, it’s also going to be restructuring the airline’s debts. Since Virgin Australia reportedly owes about US$10 million to the Perth airport in unpaid fees, the airport decided to block a Boeing 737-800 from taking off as a way of physically securing their claim – using a bulldozer.

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Canadian Government Backs Off Supporting Airlines Who Stick It To Customers On Refunds

by Gary Leff

air canada plane tarmac
Apr 23 2020

The U.S. government is clear that airlines must refund passengers whose flights are cancelled. The European Union is clear on this too but airlines have ignored their rules. In fact, European airlines have offered refunds to Americans (or where itineraries touch the U.S.) but not for Europeans (travel that doesn’t touch the U.S.).

Canada had been clear that airlines do not have to refund passengers for cancelled flights. Fortunately they are backtracking from that position.

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A Nonsense Rumor That’s Spreading About United Airlines Bankrupcty

by Gary Leff

united plane
Apr 23 2020

It would be actually be shocking if there haven’t been discussions at each U.S. airline around what a bankruptcy filing might look like. Chapter 11 bankruptcy doesn’t mean ceasing operations. It means freezing obligations and restructuring its debts. And one of the things that would be looked at in any bankruptcy is the airline’s labor contracts.

However the specifics of this rumor are utter nonsense.

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World Airline Lobby Group Wants African Nations To Prioritize Airline Subsidies

by Gary Leff

south african airways
Apr 23 2020

Taking money from poor people in Africa to give to airlines is bat crazy. GDP per capita in Sub-Saharan Africa (2018) was US$1586. In some countries it’s much lower. 18 countries in Africa are already at their capacity for debt. Safe drinking water strikes me as a higher priority than airline subsidies, and in the current pandemic I’d focus more on lack of testing and lack of ventilators and personal protective equipment than giving it to failed airline executives.

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