Headquartered in Rome, the eternal city, Alitalia is the nineteenth largest airline in the world, with its main hub at Rome’s Leonardo da Vinci-Fiumicino Airport. Alitalia serves 66 international and 24 domestic destinations, its top 12 flights all originating from Rome. Alitalia offers a frequent flier program MileMiglia, qualifying fliers for all the benefits of the Sky Team Alliance. Members of MileMiglia can earn miles on flights on Alitalia or any of its thirteen Sky Team partners, including Air France, Delta, Northwest, Aeroflot, Korean Airlines, Czech Airlines, and more.
The very first Alitalia flight took place just a year after the end of World War II, in 1946, originating in Turin and arriving in Rome via Catania. The carrier’s first international flight was in 1947, taking passengers from Milan to South America. Alitalia’s present fleet primarily consists of Boeing and Airbus aircraft, as the company makes strategic changes to expand its international presence after bankruptcy and merger.
Airlines seldom make money, and Alitalia is no exception to the rule. The carrier had only one profitable year, 1998. When the Italian government stopped subsidies in 2006, flights were grounded, and the airline found it increasingly difficult to deal with labor issues. Alitalia declared bankruptcy in 2008, and then sold a 25 per cent stake to Air France-KLM.
The newly privatized Alitalia then merged with Air One under a corporate consortium called Compagnia Aerea Italiana (CAI), which finalized its acquisition of the two airlines in late 2008. The new Air One operates frequent flights to 36 destinations in Europe and also to North America, flying from Rome, Milan, and Turin.
Italian Prime Minister Silvio Berlusconi had called for the formation of the air partnership, which derived over 1 billion euros in investment capital from leading Italian entrepreneurs and banks. Air One assumed Alitalia’s debts and its assets, which led to inevitable public questions concerning how much the Alitalia sale was subsidized by European taxpayers. Air One vowed to bring the carrier to profitability by 2010, but its only initial changes were unpopular job cuts. Although over 12,000 employees of the “old” Alitalia kept their positions, another 3,250 were fired in a five-year plan to bring the new airline to profitability by 2010.
CAI officials hope that the 25 per cent stake held by Air France-KLM will enable the new company to expand its coverage of international destinations that will bring the company into the black. But Alitalia’s problems created a great deal for the flying public, as all tickets were honored and the new participation in Sky Team greatly enhances opportunities to earn and use frequent flier points from MileMiglia.
Alitalia continues to provide charters for a well-known jet nicknamed “Shepherd One,” used by the Holy Father whenever he leaves the Vatican on flights around the world. The new consortium is expected to continue to provide Shepherd One.