After Alitalia’s demise, ITA airline launches with new look

Alitalia, Italy’s first flag carrier and largest airline, created in 1946, shut down on Friday and the new airline ITA, born out of the ashes of long-struggling Alitalia, intends to commence operations. (AFP)
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Updated 15 October 2021

After Alitalia’s demise, ITA airline launches with new look

  • ITA, or Italy Air Transport, officially launched after bankrupt flag carrier Alitalia landed its final flights Thursday night
  • Protests and strikes accompanied the runup to Alitalia's formal demise because the much smaller ITA Airways

ROME: Italy’s new national airline, ITA Airways, flew its inaugural flights Friday and unveiled its brand and logo, recycling the red, white and green of its Alitalia origins. It tries to chart a new future while competing with low-cost airlines.
ITA, or Italy Air Transport, officially launched after bankrupt flag carrier Alitalia landed its final flights Thursday night, ending a 74-year business history that a series of financial crises had marred in recent years.
Protests and strikes accompanied the run-up to Alitalia’s formal demise because the much smaller ITA Airways is only hiring around a quarter of Alitalia’s more than 10,000 employees. Negotiations with unions are ongoing.
ITA paid 90 million euros (over $104 million) for the rights to the Alitalia brand and website, but the new airline is called ITA Airways and it has its own website and a new frequent flier program, called “Volare” (“Fly”).
“Discontinuity doesn’t mean denying the past, but evolving to keep up with the times,” ITA President Alfredo Altavilla said in a statement.
During a conference launching the airline, Altavilla insisted that the greatly reduced size of ITA — its slimmer fleet, workforce and destinations — make it a viable carrier that can compete with low-cost airlines while offering better service, connections and value.
“ITA Airways is being born right-sized, in the optimal dimensions both in terms of the size of its fleet and its destinations,” he said. “We don’t carry with us the negative inheritance of being too big that conflict with the economic reality.”
He bristled when asked about reported predictions by low-cost carriers of ITA Airways’ failure.
“They might be very, absolutely right that this is gonna be difficult for us, but I am really curious to see one day their PnL (Profits and Loss) and their balance sheet without all the subsidies that they are getting from the local institutions and the small airports here in Italy,” Altavilla said.
“I want a level playing field,” he added.
The first ITA flight was the 6:20 a.m. from Milan’s Linate airport to the Italian city of Bari, on the Adriatic Sea. In all, ITA is flying to 44 destinations and aims to increase that number to 74 in four years.
Among its routes, the company plans to operate flights to New York from Milan and Rome, and to Tokyo, Boston and Miami from Rome. European destinations from Rome and Milan’s Linate airport will also include Paris, London, Amsterdam, Brussels, Geneva and Frankfurt, Germany. Routes to South America and Los Angeles are planned.
ITA planes will be royal blue with Alitalia’s trademark “tricolore” on the tail, reflecting the red, white and green of the Italian flag. The Italian national sports team colors are blue, and company officials said Friday that the color scheme chosen for the new aircraft aims to make ITA “azzurri,” — the team nickname — too.
For now, the new blue Airbus aircraft exists only in advertisements, with Alitalia’s old white fleet actually in the skies.
Officials were coy about possible partnerships with other airlines. Previously, Alitalia was a member of the SkyTeam alliance, which included Delta, Air France and KLM, among other airlines.
ITA has 52 planes that it says will grow to 105 in the same period and is pointing to next-generation aircraft that use sustainable, alternative fuel sources.
The company launched with 2,800 employees — 70 percent of them from Alitalia — and said it expects to increase the size of its workforce to 5,750 by 2025.


Oil rebounds above $76 on speculation virus fear overrated

Updated 30 November 2021

Oil rebounds above $76 on speculation virus fear overrated

LONDON: Oil rebounded by more than 5 percent on Monday to above $76 a barrel as some investors viewed Friday’s slump in oil and financial markets as overdone while the world awaits more data on the omicron coronavirus variant.

Brent crude was up $3.66, or 5 percent, at $76.38 a barrel by 1444 GMT, having slid by $9.50 on Friday. US West Texas Intermediate crude was up $4.36, or 6.4%, at $72.51, having tumbled by $10.24 in the previous session.

“We saw some correction as Friday’s plunge in oil prices has been overdone,” said Tatsufumi Okoshi, a senior economist at Nomura Securities.

Friday’s slide, the biggest one-day drop since April 2020, reflected fears that travel bans would hammer demand. The plunge was exacerbated by low liquidity owing to a US holiday and the expected demand hit does not justify such a fall, analysts said.

“The fear factor had its grip on financial markets on Friday,” said Norbert Ruecker of Swiss bank Julius Baer. “Fundamentally, the announced and enacted international air travel constraints cannot explain such a sharp slump.”

A semblance of calm also returned to wider markets on Monday as investors awaited more information about the new variant. European and Wall Street shares rose while safe haven bonds lost ground.

“I can’t help but feel that Friday’s lows were probably the bargain of the year if you were an oil buyer, speculative or physical,” said Jeffrey Halley of brokerage OANDA.

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Startup of the Week: Wafeer — helping Saudis spend wisely and save money

Updated 28 November 2021

Startup of the Week: Wafeer — helping Saudis spend wisely and save money

JEDDAH: Personal finance app Wafeer is the only service in Saudi Arabia that automatically tracks user’s spending patterns in a bid to help them stick to budgets.
The fintech company was founded by Salah Al-Bassam, Ahmad Ramadan and Abdulaziz Al-Jasser in 2019.
Each founder brings their own skills to the firm — Al-Bassam is an investment professional, Ramadan specialized in tech, while Al-Jasser is an engineer.
“We believe this was the formula that made Wafeer what it is right now, the broad and diverse experience that each founder brings to the table and of course our value add investors,” Al-Bassam told Arab News.
In March, Wafeer raised an undisclosed amount in a pre-seed funding round led by Nama Ventures, with participation from RAI group, WomenSpark, and several angel investors.
At the time, Nama Venture’s general partner Mohammed Alzubi said: “We first met the Wafeer team in August of 2020. The first thing that stood out for us was how complementary was the skillsets of the team, with real role clarity from the get go.”
Al-Bassam explains that its software automatically updates expenses that are paid through the app, rather than needing manual entry.
“Beyond tracking user’s expenses, Wafeer offers personalized advice using artificial intelligence helping users get notified before overspending and gives them recommendations that help cut spending or create wiggle room,” Al-Bassam said.
He added the Saudi Vision 2030 growth initiative highlights the importance of creating more awareness of spending, savings and investment through its Financial Sector Development Program.
Al-Bassam said: “It is one of the Vision's realization programs. This program has several goals, the most important of which are achieving financial diversity, stability, and promoting the culture of saving.
“Our goal at Wafeer is to play a role in achieving these objectives with the aim of answering this ongoing question that arises at the end of each month: What did I spend my salary on?”
Wafeer has 82,000 active users in its platform, who have notched up almost 1 million transactions.
The startup has partnered up with big companies in the region, such as online marketplace Noon and Saudi fast food app Hungerstation to provide special offers to customers.
Al-Bassam said: “We are proud of our partnerships, we have signed a number of strategic partnerships, most recently with Noon and Hungerstation to provide Wafeer users with exclusive discounts and offers that match their spending behavior.”
Wafeer currently only operates in the Kingdom, but has plans to extend its services to other Middle Eastern and North African countries.


Anghami to complete US merger ‘soon,’ CEO says

Updated 26 November 2021

Anghami to complete US merger ‘soon,’ CEO says

  • Maroun said the company’s priority is growth not profitability as it seeks to increase its market share from 6 percent

RIYADH: Lebanon’s Anghami, known as the Spotify of the Arab world, will not postpone its merger with the blank-check company Vistas Media in a potential $90 million deal, according to the firm’s CEO.

Eddie Maroun said the agreement had suffered a delay due to the procedures of the Securities and Exchange Commission in the US, but the deal will still go ahead.

The process is currently in its final stages, and the implementation will be announced very soon, he told Al-Arabiya on Thursday.

Maroun said the company’s priority is growth not profitability as it seeks to increase its market share from 6 percent.

He expects Anghami to achieve profitability within three years, he added.

Subscriptions represent 80 percent of the company’s revenue with the rest coming from advertising, Maround said.

Founded in 2012 in Lebanon, Anghami is the first legal music streaming platform in the Middle East and North Africa region.


Dubai real estate sector deals back to pre-pandemic level: Land department

Updated 26 November 2021

Dubai real estate sector deals back to pre-pandemic level: Land department

  • The number of deals in October was at the highest level since June 2019

RIYADH: Dubai’s real estate market has seen the highest value of deals since March 2019, according to data from the Dubai Land Department.

Figures show that in October, 5,352 transactions worth 13.12 billion UAE dirhams ($3.57 billion) were recorded.

The number of deals was at the highest level since June 2019.

The value of real estate sales transactions in the first 10 months of 2021 are more than the whole of 2020 and the highest since 2015, according to the data.

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Oman’s Bank Nizwa welcomes merger proposal from Sohar International

Updated 26 November 2021

Oman’s Bank Nizwa welcomes merger proposal from Sohar International

RIYADH: Oman-based Sohar International Bank and Bank Nizwa are considering a merger, according to Al-Arabiya.

Bank Nizwa’s board welcomed the proposal from Sohar International on Nov. 25 to study the idea of merging the two banks, it was reported.

Bank Nizwa recorded profit growth of 14 percent in the third quarter to 3 million Omani riyals ($7.7 million).

Profit growth of Bank Nizwa increased by 6 percent in the first nine months of 2021 to 9 million riyals.

Bank Nizwa is Oman’s first dedicated Islamic bank, launching in January 2013, with fully Shariah-compliant products and services.