Ita after Alitalia? A farce. Here because
Fantasizing about Ita's departure before the summer is madness. Only Alitalia under extraordinary administration can operate on the market as the summer season approaches. That's how. The analysis of Gaetano Intrieri
It is evident that there is a very specific plan to make Alitalia disappear and it is equally evident that this plan enjoys the almost unanimous support of Italian politics and an important part of the trade unions. It is now over a year that I have described the absolute impossibility of ITA to be able to leave in continuity with Alitalia. Vestager yesterday, once again, made it clear. Alitalia is now practically collapsed, it no longer pays its suppliers, by virtue of the prerogatives of the Extraordinary Administration and pays with the dropper and when it wants a part of the salaries with the sole purpose of keeping "the people" good while waiting for the Government to find an (impossible) solution. I remind you that the Extraordinary Administration is prohibited from continuing the provisional exercise if this exercise involves an increase in the liabilities of the balance sheet. Each new day is a step forward along the road of "no return" that will inexorably lead to the "grounding" of the airline, perhaps the only and ill-concealed goal of the country's ruling class.
If Ita started in the only way it can do it, or in total discontinuity with Alitalia, it would be of no use at all if not to waste a few more billion of public money and to lay off, with the excuse of the European Union, another 6000/7000 people . While by now it is very clear to everyone the lack of management and skills of those who are managing this farce called Ita.
I still think that Alitalia can only be saved by those whom I like to call "the men of the airplanes", or by the lessors through a refinancing of the owned and leased fleet in agreement with the creditors and with the employees of Alitalia who, if they really want to In my opinion, they are called upon to do their part to save their company.
A financing operation of the Extraordinary Administration by private subjects, in addition to leaving the perimeter of competence of the European DG and overcoming the political impasse, is convenient for creditors, is convenient for lessors and is convenient for employees who only in Alitalia, and certainly not in ITA, they will be able to continue working.
Last but not least for the State and Italian citizens there would be a net saving of at least three billion and it would put an end to the mountain of lies and empty words that fill today's debate and stop the new binge of customers in the new Ita that will inexorably characterize his eventual departure.
It is therefore necessary to ask whether there are alternative routes in the interest of all parties to be protected in this affair. Meanwhile, it is necessary to clarify which are the parts to be protected. In my opinion there are three: the creditors of Alitalia, the employees of Alitalia and finally the Italian State, or we taxpayers.
First of all, it is necessary to take a decisive step towards the reality of facts and industrial logic. Pursuing and fantasizing Ita's departure in the upcoming summer season is pure madness, only those who do not live and work in the air transport sector can believe such a joke. Only Alitalia in Extraordinary Administration can operate on the market as the summer season approaches, thinking of a new person leaving next July is really an insult to those who know the rules of this business model. On the other hand, considering the state in which Alitalia finds itself after the loss of exhibitions in 2020 and also considering that by now the company is in fact a fragmented jumble of process mechanisms without any managerial logic, so that it can return to operate with a industrial logic and with a coherent strategy taking advantage of the recovery of the market in the summer, it is impossible not to pass by an agreement in which employees and creditors are ready to be part of the project. If this decisive condition were to become concrete, then Alitalia in AS could have a loan of about 800 million dollars through the refinancing of the aircraft after the same aircraft must inevitably become the property of the company in AS through an agreement. with the lessors.
The goal would be to use the money to seriously restructure the current company in AS by reviewing the entire value chain upstream or to finalize a profound and unavoidable reduction in operating costs which, as explained several times in several of my analyzes, are for about 40% higher than the average of competitors. At that point, a new vehicle could be set up within the AS where employees and creditors would be part of the share capital. The other part of the capital would instead be put up for tender through a capital increase of up to 1.5 billion euro (including the goodwill of the governance right). This would result in a vehicle which, in continuity with the AS and in full compliance with market rules and therefore with European regulations, would have the following peculiarities:
1. the presence of the State in the capital through the conversion into equity of the loans granted to Alitalia for a nominal value of 1.3 billion euro (loan repayment);
2. the presence of employees in the share capital for a nominal value of 150 million euros (through an advance made by Fondaereo or a salary-backed loan);
3. the presence of a new shareholder (which could also be the State or an industrial partner) who is guaranteed the governance of the company through a capital increase to be paid in full equal to 1.5 billion euro.
4. the presence of the creditors of Alitalia SAI in the capital in compliance with the par conditio creditorum for a nominal value equal to 40% of their credit which would be around 1.2 billion euro.
5. irrevocable commitment of the controlling shareholder (or the one who pays 1.5 billion euros) to listing on the stock exchange within 3 years or as an alternative to the purchase of the shares of creditors, employees and even the State at the nominal value increased by an ITR of 2% on an annual basis
Furthermore, the new vehicle that would clearly always be called Alitalia and would act in total continuity with the existing assets and with all the current employees of the company, could count:
a) on the restructuring of aircraft leasing contracts through the refinancing of leases and on the restructuring of all internal process mechanisms
b) on all in-house facilities (i.e. maintenance and handling) also through the re-merging of Atitech, the implementation of capabilities at FCO to obtain part 145 Base Maintenance on all aircraft in the fleet and obtaining the certifications for engine overhauls
c) on a new maintenance base in Olbia (with a contribution that could come from the Sardinia Region) and an operational base in Malpensa where the staff of Air Italy composed of n. 10 737 / MAX aircraft and 5 787/9 aircraft The fifteen aircraft would be available immediately and at very advantageous conditions.
It is useful to say that on such a project both some lessors in terms of refinancing and important industrial partners would be ready to do their part and also to guarantee the capital increase up to 1.5 billion euros now by then.
We would have that:
the State would not disburse further public money on the contrary it would enhance the loan disbursed and today completely lost;
not one of the Alitalia employees would lose their job and this would indirectly be a further advantage for the State which, in the face of this advantage, will have to bear the contributions of the employees for 5 years.
Air Italy employees would be relocated to work and there would also be obvious benefits for Malpensa airport (in exchange there must be an irrevocable commitment by the State to Linate's quota only for the North-SOUTH routes and the shuttle with Rome).
the presence of a representation of the workers on the Board of Directors of the new vehicle.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/smartcity/ita-dopo-alitalia-una-farsa-ecco-perche/ on Sun, 02 May 2021 06:54:52 +0000.