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FOUNDED IN 1983 AND STARTED OPERATIONS IN 1995. ESTABLISHED AS ALIADRIATICA, PROVIDING AIR-TAXI SERVICES AS WELL AS OPERATING A FLYING SCHOOL. GRUPPO TOTO ACQUIRED A 98% HOLDING IN 1988. DOMESTIC & INTERNATIONAL, SCHEDULED & CHARTER, PASSENGER & CARGO, JET AIRPLANE SERVICES.
VIA CESARE GIULIO VIOLA 27
00148 ROME, ITALY
VIA SARDEGNA 14
00187 ROME, ITALY
ITALY (ITALIAN REPUBLIC) WAS ESTABLISHED IN 1861, IT COVERS AN AREA OF 301,268 SQ KM, ITS POPULATION IS 58 MILLION, ITS CAPITAL CITY IS ROME, AND ITS OFFICIAL LANGUAGE IS ITALIAN.
JUNE 1994: STARTED SCHEDULED AND CHARTER OPERATIONS AS ALIADRIATICA.
1ST 737-200 DELIVERY.
AUGUST 1995: OWNED BY TOTO GROUP (ENGINEERING & CONTRACTORS).
1ST 737-300, (GUI) LEASED, EX-TAESA (TES).
NOVEMBER 1995: 1 737-300, (GUI) LEASED. ANOTHER TWO, IN EARLY NEXT YEAR. 1 737-300 (VN972), (ILF) LEASED, 145 PAX.
JANUARY 1996: RENAMED "AIR ONE" (WAS FORMERLY "ALIADRIATICA").
OPERATES 6 DAILY FLIGHTS, ROME FIUMICINO, & MILAN'S (CLOSE IN) LINATE AIRPORT, 5TH BUSIEST ROUTE IN EUROPE, EXPANDED FROM AIR TAXI TO SCHEDULED FLIGHTS IN SOUTHERN ITALY. TO ADD 3 JETS & BOOST SERVICE TO 13 ROUND TRIP DAILY TRIPS. AIR FARES ARE -20 - -40% LOWER THAN ALITALIA (ALI)'S.
160 EMPLOYEES (INCLUDING 94 FLIGHT CREW (FC)).
FEBRUARY 1996: 2 737-300'S (26318 WET, 24219 SUBSERVICE), TRANSAVIA (TAV) 3 MONTH LEASED.
APRIL 1996: CARL TOCO, CHAIRMAN & CEO.
SEPTEMBER 1996: 1 737-300, TRANSAVIA (TAV) 9 MONTH LEASED, (PP808).
OCTOBER 1996: NOW OPERATES 1 737-200, & 5 737-300'S.
NEW ROUTES TURIN - ROME & NAPLES - MILAN.
MAURIZIO MUNNO, VP TECHNICAL OPERATIONS, EX-ALITALIA (ALI).
NOVEMBER 1996: NOW 7 737-300'S. 1 737-300 (24329), TRANSAVIA (TAV) LEASED FOR 7 MONTHS.
NEGOTIATIONS, RE-NEW MAINTENANCE CENTER, IN EUROPE.
JANUARY 1997: TAKES OVER NOMAN AIRLINES (FOR) WITH 3 YEAR LEASING CONTRACT. WILL USE 2 DC-9-15'S TEMPORARILY, BUT WILL DISPOSE OF THEM BECAUSE CANNOT INTEGRATE INTO CURRENT FLEET OF 8 737'S. WILL ABSORB NOMAN (FOR)'S 76 EMPLOYEES, WHO WILL MOVE FROM ROME CIAMPINO TO FIUMICINO AIRPORT (NOMAN (FOR) ALSO MANAGES ITALIAN TECHNICS ENGINEERING DIVISION).
1996 = .731 MILLION PASSENGERS (PAX).
APRIL 1997: 1 737-230, EX-LUFTHANSA (DLH).
MAY 1997: LEASES 767-300ER FROM AIR EUROPA (ARE) FOR 2 DAYS DURING EASTER, ON MILAN - NAPLES ROUTE. MILAN LINATE TO LONDON STANSTED. IN OCTOBER 1997, ROME - BRUSSELS. 1ST INTERNATIONAL FLIGHT IN COOPERATION WITH (UKL).
FORMER NOMAN (FOR) DC-9-15 STARTS SERVICE ON TURIN - ROME - BARI ROUTE. 2ND STARTS WITHIN 2 WEEKS.
4 737-430'S, EX-LUFTHANSA (DLH), TO REPLACE 2 TRANSAVIA (TAV), & 1 AIR HOLLAND (HOL) WET-LEASED 737. TO HAVE A FLEET OF 11 IN 1997, UP TO 20 IN 1998. -2 DC-9'S IN 1998.
JUNE 1997: 1ST OF 4 737-430'S (27001; 27002; 27003; 27005), EX-LUFTHANSA (DLH), FROM ADRIENNE ENTERPRISES.
AUGUST 1997: 1 737-230 (JT8D-15), EX-LUFTHANSA (DLH).
SEPTEMBER 1997: NEW ROUTES MILAN - ATHENS, MILAN (LINATE)/ROME FIUMICINO) - OLBIA, LINATE - LAMEZIA TERME.
DECEMBER 1997: MILAN (LINATE) - PESCARA.
JANUARY 1998: MEMO OF UNDERSTANDING (MOU) FOR SWISSAIR (SWS) TO TAKE "SUBSTANTIAL" MINORITY 30% STAKE IN AIR ONE (ADH) TO GAIN ACCESS TO ITALY'S RICH, & DENSELY CROWDED, NORTHERN REGION. ITALY'S TOTO CIVIL ENGINEERING CURRENTLY OWNS 98.8%.
NOW 480 EMPLOYEES, 9 737'S & 2 DC-9'S.
JOINS GLOBAL ALLIANCE OF SWISSAIR (SWS), SABENA (SAB), AUSTRIAN AIRLINES (AUL), AND DELTA AIRLINES (DAL).
1 737-430 (CFM56-3C1), EX-LUFTHANSA (DLH).
MARCH 1998: 1997 HAD ALMOST 1.4 MILLION PASSENGERS (PAX) (+97%)!
IN 6/98, 5TH 737-430, EX-LUFTHANSA (DLH), AND WILL RETIRE 2 DC-9-15RC'S. NOW HAS 11 737'3, & 2 DC-9'S. LOCAL MEDIA SAYS FLEET TO INCREASE TO 30 AIRPLANES IN 1 YEAR, & MAY +3 747'S.
APRIL 1998: MAURIZIO MUNNO, TECHNICAL DIRECTOR, REASSIGNED TO SPECIAL PROJECT RE-EUROPEAN REGULATIONS. ALBERTO NOCCHI, NEW TECHNICAL DIRECTOR, EX-MERIDIANA AIRLINES (ALS).
MAY 1998: 1 737-430 (27004), EX-LUFTHANSA (DLH), FLIGHTLEASE LEASED.
SEPTEMBER 1998: NEW ROUTES BORDEAUX - MARSEILLES, LYON, PARIS (CDG), MARSEILLES - TUNIS, LYON - TOULOUSE, & STRASBOURG - BASTIA (OPERATES FOR AIR FRANCE - (AFA).
NOVEMBER 1998: 737-3K2 (1856-24328), TRANSAVIA (TAV) WET-LEASED.
DECEMBER 1998: SAAB 2000 CROSSAIR (CSR) WET-LEASED TO EXPAND SERVICE TO ZURICH, ON BEHALF OF PARTNER SWISSAIR (SWS).
JANUARY 1999: 737-229 (593-21839, I-JETA), RETURNED FROM AIR SICILIA (SNL).
FEBRUARY 1999: MARCO BENINCASA, MANAGING DIRECTOR, EX-BRITISH AIRWAYS (BAB) MANAGER, ITALY.
APRIL 1999: 600 EMPLOYEES. (http://www.flyairone.it).
2 737-36E'S (2769-26322, EI-CRZ; 2792-26626, EI-CRS), (ILF) LEASED, EX-VIVA (VIV).
JUNE 1999: RETURNED 737-430 (EI-CPU) TO LESSOR (2344-27004).
NOVEMBER 1999: 1998 = -$4.9M (-$32.8M) (NET LOSS).
MARCH 2000: 1 737-430 (27007), EX-(DLH), GOAL 5 YEAR LEASED.
APRIL 2000: 600 EMPLOYEES. SITA: ROMKKAP.
SEPTEMBER 2000: LINATE - CATANIA (737, 4/DAY).
OCTOBER 2000: LUFTHANSA (DLH) TO CODE SHARE WITH AIR ONE (ADH) ON ALL DOMESTIC FLIGHTS. (ADH) WILL CODE SHARE WITH (DLH) ON FLIGHTS FROM ROME, & INCLUDE FREQUENT FLYER PROGRAM. (ADH) FLIES TO 15 ITALIAN CITIES. MILAN - CATANIA (2/DAY).
JANUARY 2001: SOLD AND LEASED BACK 2 737-400'S (EI-COI; EI-COJ) FROM GOAL.
MARCH 2001: MILAN (LINATE) - LARNEZIA TERME (DAILY).
APRIL 2001: 2 737-42C'S (2060-24232, EI-CWE; 2270-24814, EI-CWF), PEGASUS (PSS) LEASED.
OCTOBER 2001: CODE SHARE WITH LUFTHANSA (DLH), TURIN, TO CATANIA (737).
NOVEMBER 2001: 1ST 9 MONTHS = +#EUR1.76M: 1.47M PAX (1.3M).
WILL HAVE 18 737'S BY END OF 2001. ROME (FCO) - CATANIA/PALERMO.
DECEMBER 2001: CODE SHARE WITH (DLH), MILAN (LINATE), TO FRANKFURT (DAILY). PALERMO - ROME (4/DAY).
2 737-4YO'S (2064-24912, /91 24 24 EI-CWX) EX-AIR EUROPA (ARE), GPA (GUI) LEASED 42 MONTHS. 1 737-4K5 (2677-27831, /94 25 09 D-AHLU), BLUE PANORAMA (BPA) WET-LEASED.
JANUARY 2002: MILAN, & ROME, TO SARDINIA.
1 737-3K2 (24329), TRANSAVIA (TAV) 3 MONTH LEASED. 2 737-8K2'S (28379; 28380), (TAV) 4 MONTH WET-LEASED.
FEBRUARY 2002: 2 737-86N'S (28642; 28643), PEGASUS (PGS) WET-LEASED.
MARCH 2002: (TELEPHONE: (06) 488 36 42). (FAX: (06) 488 36 45).
APRIL 2002: (TELEPHONE: +39 (06) 478761). (FAX: +39 (06) 488 5913).
MAIN BASE: ROME - FIUMICINO LEONARDO DA VINCI (FCO).
HUB: MILAN LINATE (LIN).
MAY 2002: 1 737-436 (25164), EX-BRITISH AIRWAYS (BAB), BOULLIOUN (BOU) LEASED. 1 +1 ORDER (10/02) 737-4Q8 (25740; 2620-6302, EI-CXM), EX-VIRGIN BLUE (VOZ).
August 2002: Plans to add Rome (FCO) - Bologna.
October 2002: 1 737-43Q (2461-25740, EI-CZG), EX-(VOZ), (ILF) leased.
December 2002: Resumes Rome (FCO) - Crotone (daily). In 9/03, Verona - Lampedusa (2/week). Resumes Bologna - Lampedusa (2/week). 737-4Q8 (24070) returned to (ILF), leased to (JAT).
February 2003: Code share with Air Canada (ACN), Rome (Fiumcino) - Catania/Lamezia Terme/Palermo, and Venice.
737-43Q (2838-28493, EI-TVB), NTU, to Virgin Express (EBA).
April 2003: 1,600 employees.
July 2003: 1 ATR42-300, Italy First wet-leased for Trapani - Catania/Pantelleria.
August 2003: Code share with Air Canada (ACN), Rome to Turin.
September 2003: 2002 = 2.54B RPK (passenger traffic) (+71.4%); 4M passengers (PAX) (+84.1%).
2002 TOP WORLD AIRLINES PASSENGER TRAFFIC RPK (B):
149 (MLT) 2.75; 150 (WLD) 2.69; 151 (ALO) 2.61; 152 (MESABA) 2.59; 153 (AIR WISCONSIN) 2.57; 154 (ADH) 2.54; 155 (ACN) JAZZ) 2.53; 156 (SNS) 2.48; 157 (USA) EXPRESS) 2.47; 158 (JAA) 2.45; 159 (HORIZON AIR) 2.44; 160 (SHG) 2.41; 161 (ROS) 2.38; 162 (RFG) 2.37; 163 (CHAUTAUQUA AIRLINES) 2.33; 164 (KLM) CITYHOPPER) 2.28; 165 (MCU) 2.26; 166 (ALS) 2.25.
October 2003: Pisa - Catania (737-300, daily).
February 2004: May buy insolvent Gandalf Airlines.
In 3/04, Genoa - Catania (daily); Rome (FCO) - Albenga. In 6/04, Genoa - Palermo (daily); Pisa - Cagliari (daily).
April 2004: ASI Entertainment developed G3 network-based wireless cockpit communications and reporting system that was tested on a 737 for Air One (ADH); logbook was transmitted from onboard TabletPC to central server at 432Kbps.
In 6/04, Naples - Trieste (daily). Rome (FCO) - Trieste (2/day).
1 737-800 (TC-APN), Pegasus (PGS) wet-leased.
May 2004: 5-year contract with ASI Entertainment to equip its fleet of 28 737's with G3CARS, its 3G-based cockpit communications and reporting system, with installation to begin early next quarter.
737-33A, Hola (HLB) wet-leased and 737-300, Fischer (FIH) wet-leased. 3 737-4S3's (CFM56-3) (1700-24163, EI-DFD; 1702-24164, EI-DFE; 1736-24167, EI-DFF), ex-British Airways (BAB), Orix (OXA) leased. 737-430 (2311-27000, EI-DGD), Oasis leased. 757-236 (617-26245, TF-FIS), Icelandair (ICE) wet-leased.
June 2004: Will take over from Miniliner, the daily (nightly) postal service from several Italian airports, including Pisa, Torino, & Genoa to Rome.
2 A320-214's (CFM56-5B4/2P) (1439, /01 CS-TQA; 1450, /01 CS-TQB), 154Y, Air Luxor (LXA) wet-leased.
July 2004: Reached a multiyear agreement with Sabre Airline Solutions to deploy the SabreSonic new-generation passenger suite to power its reservations, check-in, and Web capabilities. (ADH) also benefits from an integrated package of Sabre products and decision-support tools along with an enhanced agreement for GDS participation. Full implementation of SabreSonic is scheduled for completion in the first half of 2005.
Pisa to Ibiza & Palm de Mallorca (charters, 2/week).
2003 = 3.24B RPK (traffic) (+24.9%); 60.2% LF (load factor); 4.95M passengers (PAX) (+22.6%).
737-436 (25843, G-DOCM), British Airways (BAB) wet-leased. 737-46J (27171), Pembroke (PEB) leased.
August 2004: 1,600 employees.
In 10/04, Pisa - Palermo (daily). Rome (FCO) - Nice. Genoa - Naples (2/day).
October 2004: Projects 2004 = +# EUR 11.5M/+$14.5M (+# EUR 352K): 6M passengers (PAX) (+21%). Air One (ADH) has a 25% - 26% share of the domestic Italian market, Alitalia (ALI) has 45%.
May 2005: 2,111 employees.
July 2005: (TAP) Portugal and Air One (ADH) signed a marketing agreement covering codeshare operations on (TAP)-operated routes from Lisbon to Rome, Milan Linate, & Venice. Both companies are to market jointly a wide range of domestic destinations operated in codeshare in Italy and Portugal. (TAP) will apply its code to Air One (ADH) routes between Rome Fiumicino and Turin, Palermo, Catania, Genoa, Lamezia Terme, Trieste, Alghero and Venice and the (ADH) code will be applied to (TAP) flights between Lisbon and Oporto, Funchal, and Faro.
1st 6 months = 1.73B RPK (passenger traffic) (+.8%); 2.75M passengers (+.8%).
October 2005: The Italian government, as expected, approved a financial assistance package for Italian airlines amounting to €200 million/$239 million. Deputy Transport Minister Mario Tassone stressed that the aid package is directed to the Italian airline industry as a whole to "help them overcome moments of crisis owing to the rising fuel price," La Republica reported. It added that Alitalia (ALI) will receive approximately €80 million. Because Rome cannot give aid to the carrier directly without violating (EU) regulations on state aid, the decree is designed to provide benefits to all Italian airlines. The aid is welcome news to Alitalia (ALI), which aims to present a revised restructuring plan next week that will persuade Deutsche Bank and Banca Intesa to guarantee a €1.2 billion capital increase.
November 2005: Volare Airlines (VLR)'s proposed sale has attracted offers from about 10 groups, including Alitalia (ALI), AirOne (ADH), Meridiana (ALS), Eurofly (EUY), and easyJet (EZY), La Stampa reported. Deadline for submission of takeover bids for the Italian carrier was Sunday at noon. Alitalia (ALI) Chairman and CEO Giancarlo Cimoli said last week that his carrier might buy Volare (VLR) "if the price is fair." The LCC, which offers domestic and European low-fare flights under the volareweb.com brand, collapsed last year along with Air Europe (EIY), its carrier for intercontinental scheduled and charter flights. The companies were admitted to the so-called Extraordinary Management Procedure on Nov 30, 2004, and have been restructured by a government-appointed Extraordinary Commissioner.
December 2005: Sabre said Air One (ADH) of Italy slashed data communications costs -40% following conversion to a suite of SabreSonic and other systems from Sabre Airline Solutions covering passenger, revenue and fare management, planning and scheduling, movement control, dispatch management and market analysis.
January 2006: Air One (ADH) reached agreement with Accenture and Trax USA to implement the latter's Trax Engineering and Maintenance software.
Alitalia (ALI) won the bidding for Volareweb.com (VLR), the Low-Cost Carrier (LCC) subsidiary of Volare Airlines (VLR). It reportedly offered €38 million/$46.2 million, some €10 million more than Air One (ADH), for the carrier, which has been in extraordinary administration since Nov 30, 2004, Il Sole 24 Ore reported. Air One (ADH) is considering suing Alitalia (ALI), questioning its right to participate in the auction, Corriere della Sera said. Official results of the sale are due to be announced Jan 15.
Italy's Air One (ADH), which operates an all-737 fleet to 23 domestic destinations, repositioned itself as a European player yesterday by signing a contract with Airbus for 30 A320s and 60 options. The deal reportedly is worth $1.8 billion at list prices. The (CFM56-5B6/P)-powered airplanes will be configured in a two-class layout seating 159 and gradually will replace the carrier's leased fleet of 21 737-400s, six dash 300s and three dash 200s.
According to (CFMI), deliveries will take place from 2006 through 2009 and the value of the 30-firm engine deal is $360 million. The Associated Press reported Air One (ADH) already intends to exercise 10 options during 2006.
"After a lengthy and very detailed evaluation of competing airplanes, we are fully convinced to have chosen the most efficient and comfortable airplanes available," Air One (ADH) President Carlo Toto said.
The airline commenced operations in Pescara in 1983 as Aliadriatica. Grupo Toto, a construction and civil engineering conglomerate, bought into the carrier five years later and now controls 98%. It ramped up its scheduled national service in 1995, the year it changed its name to Air One (ADH). It now is Italy's second-largest airline and has partnered with Lufthansa (DLH) since 2000. It also has codeshare arrangements with Air Canada (ACN), Aegean Airlines (CRM) and Darwin Airlines.
February 2006: Air One (ADH) won its appeal to block Alitalia (ALI)'s takeover of Volare Airlines (VLR), La Stampa reported. A Roman civil court argued it would be improper for Alitalia (ALI) to spend part of a €400 million/$483.7 million state-guaranteed bridge loan to buy the bankrupt Low-Cost Carrier (LCC) rather than to address its own financial difficulties. Alitalia (ALI) bid €38 million for Volare (VLR). Air One (ADH) said it was satisfied with the ruling, whereas Alitalia (ALI) described the court's decision as "abnormal," claiming it did not respond directly to Air One (ADH)'s appeal. Meantime, Meridiana (ALS) called for the sale process to be abandoned and restarted.
Milan Orio al Serio airport served 323,229 passengers in January, an increase of +21% over the year-ago month. Scheduled passenger traffic rose +28% to 273,000 while the number of charter passengers rose +3%.
March 2006: Air One (ADH) (AP/Rome Fiumicino) will operate a seasonal weekly 737 service from Pescara to Kerkyra in July and August. Adria Airways (ADR) will begin four-times-weekly service from Ljubljana to Rome via codeshare with Air One (ADH).
The European Commission (EC) authorized a €25 million/$29.9 million, six-month guarantee from the Italian government to ailing Volare Airlines (VLR). "This short-term aid is intended to rescue the firm from bankruptcy and allow it to take steps to continue operating," the (EC) said, noting that Volare (VLR) will be able to use the guarantee to obtain credit for that amount from banks. The airline, part of Volare (VLR) Group, went into extraordinary administration on Nov 30, 2004, and recommenced flights June 2005 from Milan Linate to Naples, Brindisi, Bari, Catania and Palermo. Its extraordinary administrator launched a sale process that has become the subject of a series of legal cases. The Low-Cost Carrier (LCC) initially was awarded to Alitalia (ALI) following a bidding process, but Air One (ADH) contested the legality of Alitalia (ALI)'s participation, arguing it was using restructuring aid to finance the acquisition. An initial decision favored Alitalia (ALI), and earlier this week, a court in Milan backed a decision made by a court in Busto Arsizio to reject Air One (ADH)'s appeal, according to La Stampa. Another ruling is expected from Rome's main court in the coming days.
Later, the Italian government said that it conditionally approved Alitalia (ALI)'s €38 million/$45.9 million takeover of struggling Volare Airlines (VLR), according to press reports. Alitalia (ALI)'s bid had been challenged in court by domestic competitor Air One (ADH), which will continue to press its claims. The acquisition depends on Alitalia (ALI)'s keeping Volare (VLR)'s operations going for at least two years while maintaining year-end 2005 employment levels. If it fails to abide by these conditions or if Italy's antitrust authority opposes the deal, then Air One (ADH) will be adjudged the winner of the bid, the Industry Ministry said in a statement. A partnership between Italian Low-Cost Carrier (LCC) Meridiana (ALS) and former Alitalia (ALI) subsidiary Eurofly (EUY) will take Volare (VLR)if Air One (ADH) is unable to proceed. The ministry is overseeing the so-called extraordinary administration of Volare (VLR), which received permission earlier this month to take a €25 million, six-month loan from the government. Alitalia (ALI) won its appeal in a Rome court against a previous ruling in favor of Air One (ADH).
Air One (ADH) has reportedly leased nine Bombardier CRJ-900s from Lufthansa (DLH), instead of EMB-170s as reported earlier.
May 2006: Air One (ADH) plans to install Teledyne Controls' Flight Data Interface Management Unit and Wireless GroundLink technologies on the 30 A320s it recently purchased.
Alitalia (ALI)'s acquisition of the assets of bankrupt Volare (VLR) Group was suspended yesterday by Italy's top administrative court, AFX reported. The state council supported an appeal by Air One (ADH), which argued that the flag carrier should not have been allowed to bid for Volare (VLR) because of its precarious financial position and for antitrust reasons. Volare (VLR) Group, which includes charter carrier Air Europe (EIY) and Low Cost Carrier (LCC) Volareweb, was put up for sale in November by a government-appointed administrator. The state council also noted there were "violations" in the way the auction for Volare (VLR) was conducted.
Alitalia (ALI) said its acquisition of Volare (VLR) remains valid, despite the state council's ruling, and it "is confident that these irregularities can be resolved soon, as they do not challenge the validity of Alitalia (ALI)'s offer or the administrator's decision that it was the highest." Alitalia (ALI) bid €38 million/$48.8 million for the group, bettering Air One (ADH)'s offer by €10 million. Alitalia (ALI)'s acquisition of Volare (VLR) is also subject to approval by Italy's antitrust authority, which has until May 28 to either clear the deal, or decide on a more detailed examination.
Air One (ADH) signed a deal for six 90-seat CRJ-900s and four options, Bombardier announced yesterday. List price for the firm-order airplanes is $215 million. Italy's second-largest carrier operates a fleet of 30 737s but reached a deal with Airbus in January for 30 A320s plus 60 options.
June 2006: Privately held Italian carrier Air One (ADH) is seriously considering launching long-haul flights from its Rome Fiumicino (FCO) base, Head of Network and Marketing, Giorgio De Roni said at the (IATA) Annual General Meeting (AGM) in Paris. "We are evaluating the opportunities," De Roni said. "Alitalia (ALI) is going through a difficult time, but they will recover. Maybe we should seize the opportunity."
Air One (ADH) is set to become a regional member of Star Alliance in the future, but the Italian carrier is aiming higher, Head of Network & Marketing, Giorgio De Roni said at the (IATA) Annual General Meeting (AGM). "First, I think, it makes sense that we become a regional member, then we will apply for full membership," he said. As a first step, Air One (ADH) is planning to introduce more codeshare agreements with Star carriers. "We are talking to all of them," he said.
Separately, the airline said it will install JetBlue (JBL)'s LiveTV audio/video system on its new A320s - - but without the live television component. The In Flight Entertainment (IFE) will be limited to four video and 20 audio channels. Air One (ADH) placed a firm order for 30 A320s in January to replace its aging fleet of 737s
Air One (ADH) intends to deploy A340-300s for its long-haul operations, with De Roni saying, "We are talking to different lessors; however, the market for this equipment is tight." While stressing that no firm decision has been made, he confirmed the carrier intends to start charter operations in December "to gain experience in long-haul." Routes would serve several destinations in the Caribbean and Maldives.
The airline filed a request to fly to Mauritius but those rights are held by Volare (VLR), which Air One (ADH) has tried but failed to acquire. Alitalia (ALI) initially was awarded the bankrupt carrier and Air One (ADH) is contesting that decision in court. The case also is under review by Italian competition authorities.
By the start of the (IATA) summer schedule, Air One (ADH) would like to begin scheduled long-haul services, including flights to the USA. It ventured back into the intra-European market this year, launching daily services from (FCO) to Copenhagen last month. It will add flights to Paris (CDG), Barcelona, Athens and Istanbul in the fall.
Alitalia (ALI) and Meridiana (ALS) signed a codeshare agreement for the Rome - Cagliari route. Alitalia (ALI) will add its code to Meridiana's flights while Meridiana (ALS) will lease an (ALI) airplane to operate on the route. Alitalia (ALI) lost the right to fly to Cagliari and Olbia in April, because it applied for renewal after a deadline set by ENAC. The three-year concession was awarded to Air One (ADH) and Meridiana (ALS).
2 CL-600-2D24's (15075, EI-DRK; 15076, EI-DRI), deliveries.
July 2006: The Association of European Airlines (AEA) blasted the recent resounding European Parliament (EP) endorsement of fuel taxes on domestic and intra-(EU) flights and other measures aimed at reducing airplane emissions. (AEA) Secretary General, Ulrich Schulte-Strathaus warned that the policy would lead to "the systematic dismantling of a key industry by political manipulation of its price structure." He argued that the proposed measures would price a large number of airline passengers out of the market, saying, "The mobility of European citizens would be greatly reduced, the competitiveness of European business would be damaged, the economies of Europe's tourist regions would be devastated."
The (AEA) formally introduced Italy's Air One (ADH) as its 31st member.
Snecma Services said Italy's Air One (ADH) awarded it an exclusive long-term contract covering all Maintenance Repair & Overhaul (MRO) services, as well as spare engines, for the (CFM56-5B)s powering the carrier's recently ordered fleet of 30 A320s. The contract, worth more than $500 million, will cover the engines for a minimum of 16 years, including a minimum of two restoration shop visits per engine.
CL-600-2D24 (15077, EI-DRJ), delivery.
August 2006: A320-200 (F-WWBE - see photo), delivery.
September 2006: Air One (ADH) has announced a number of new routes as follows (all daily frequencies):
Milan Linate to Berlin Tegel October 29 1x A320;
Naples to Palermo October 01 2x CRJ-900;
Naples to Pisa October 01 1x CRJ-900;
Naples to Venice October 01 2x CRJ-900;
Rome (FCO) to Istanbul October 29 1x 737;
Rome (FCO) to Pisa October 29 1x 737, 1x CRJ-900;
Turin to Barcelona October 29 1x 737;
Turin to Paris (CDG) October 29 2x 737.
Air One (ADH) will increase the weekday frequency on its Naples to Turin route from 3 to 4 flights a day on October 1st; Saturday & Sunday service consists of 2 flights. The airline will operate 3 flights with 737s and 1 with a CRJ-900.
Air One (ADH) will discontinue service from Pisa to Palermo on October 28th. The airline currently operates a daily flight using a 737.
Air One (ADH) will inaugurate nonstop service from Milan Linate to London City Airport on November 20th. The airline will operate 2 flights on weekdays and 1 on weekends using an Avro RJ70. Air One (ADH) will inaugurate nonstop service from Rome Fiumicino to London City Airport on January 8th. The airline will operate 2 flights on weekdays and 1 on weekends using an Avro RJ70. Air One (ADH) will inaugurate nonstop service from Genoa to London City Airport on January 29th. The airline will operate 1 flight on weekdays using an Avro RJ70. Air One (ADH) will inaugurate nonstop service from Turin to London City Airport on January 29th. The airline will operate 1 flight on weekdays using an Avro RJ70.
A320-214 (2869, EI-DSA), delivery.
October 2006: Air One (ADH) confirmed it offered to pay BGN5.3 million/$3.4 million to purchase 99.99% of Bulgaria Air (LZB). Italy's second-largest airline (ADH) also committed to invest €11.6 million/$14.5 million in the Bulgarian (LZB) carrier over a five-year period in addition to a €500 million fleet renewal, if it wins the tender launched in June and approved in February. Air One (ADH) said it would buy 15 A320s that would both replace Bulgaria Air (LZB)'s aging 737s and expand its fleet.
Seven candidates submitted documents, when the tender was launched, but only three were selected to continue to the second stage. The deadline for final offers was October 5. Air One (ADH) and Balkan Hemus Group (HMS), which owns Bulgaria's largest private carrier, Hemus Air (HMS), submitted bids. (HMS) bid BGN13 million and committed to invest BGN82 million from 2007 through 2011, local media reported.
Bulgaria Air (LZB) succeeded flag carrier Balkan Bulgarian Airlines (BUL), which went bankrupt in 2002. According to its website, it owns seven 737s. Its pre-tax profit dropped last year by -71% to +BGN500,000 owing to rising fuel prices. Earlier this year, Executive Director, Zlatin Surustov said the airline needed a capital hike of more than €8 million and investments of at least €1.5 million in know-how and systems software, to remain competitive in the long term.
Bulgaria is scheduled to join the (EU) along with Romania on January 1. Bulgaria's parliament ratified the agreement for establishment of a European Common Aviation Area.
Air One (ADH) took delivery of the first of 30 A320s ordered in January.
November 2006: Bulgaria Air (LZB) will be sold to Balkan Hemus (HMS) Group, the Bulgarian government announced. Hemus (HMS), which outbid Air One (ADH) for the flag carrier, will buy a 99.99% stake. It plans to invest €62 million/$79.1 million over the next two years and €82.1 million in the next five, launching service to 36 new destinations.
Air One (ADH) announced a number of new daily 737 flights from Trapani starting on December 15th as follows:
From Trapani to Bari, Bolgna, Milan Linate, & Turin.
Air One (ADH) started London City operations. For this route, the airline initiated a lease of 3 Avro RJ-70s from Transwede on November 19th. These airplanes operate from London City to Genoa, Milan Linate, Rome Fiumicino and Turin.
A320-214 (2932, EI-DSB), delivery.
December 2006: Starting January 29th, Genoa - London City, 5/week; Turin - London City, 5/week; both using Avro RJ-70s. Starting March 25th, Rome (FCO) - Istanbul, 1/day, using 737s.
January 2007: A320-214 (2995, EI-DSC), delivery. B Ae 146 (E1224), TransAir Sweden wet-leased.
February 2007: The Italian government has reduced the list of 11 potential bidders for Alitalia (ALI) to five, according to press reports. Those five each must submit nonbinding offers in early April, Reuters reported. They are Air One (ADH) Chairman, Carlo Toto's AP Holding, Carlo De Benedetti's private equity fund Management & Capitali, MatlinPatterson Global Advisers, Texas Pacific Group, and UniCredit. The government is selling a 30.1% stake in the carrier, a holding that requires the owner to bid for the entire company under Italian law.
Italy's Air One (ADH) announced the conversion of 10 A320 options into firm orders, bringing its total order for the type to 40 firm along with 25 options and 25 purchase rights. The 159-seat airplanes will be (CFM56-5B6/P)-powered.
March 2007: Starting April 1st, Rome (FCO) - Vienna, using CRJ-900s. Starting May 1st, Rome (FCO) - Bologna, using 737s/CRJ-900s. Starting June 1st, Naples - Vienna, using CRJ-900s; Rome (FCO) - Athens, - Toulon, using 737s; & - Brindisi, using CRJ-900s. Starting June 2nd, Rome (FCO) - Heraklion, using A320s; - Ibiza, using 737s; - Malaga, using A320s; - Palma, using 737s.
2 A320-216s (3076, EI-DSD; 3079, EI-DSE), deliveries.
April 2007: Air One (ADH) suffered a -62.5% decline in full-year earnings to +€6 million/+$8.1 million, compared to a 2005 profit of +€16 million, that was boosted by €14 million in special gains, according to a statement cited by AFX News. The Italian carrier's operating profit soared +76% to approximately +€26 million on a +24% rise in sales to €611.5 million. "The strategic choices undertaken, including the expansion of the network at the international level and the renewal of the fleet with latest-generation planes, strengthens the growth trend of the company and its operational efficiency," Chairman, Carlo Toto said. Air One (ADH) reported its financial results on its website in Italian. Passenger numbers rose +11.1% to 6.3 million and its share of the Italian market climbed +6 points to 33%. Its parent company, AP Holding, is among the three shortlisted bidders for Alitalia (ALI).
Spanair (SPP) and Air One (ADH) reached a codeshare agreement under which Spanair (SPP) will put its code on Air One (ADH)'s flights from Barcelona (BCN) to Turin, continuiing on to Rome Fiumicino and Naples, while Air One (ADH) will place its code on Spanair (SPP) services from (BCN) to Madrid and Oviedo.
2 A320-216s (3080, EI-DSF; 3115, EI-DSG), deliveries and 3 CRJ-900s (15119, EI-DVS; 15123, EI-DVT; 15188, EI-DVR), deliveries for "CityLiner" operations.
May 2007: Italy's Treasury Dept cleared all three bidders for Alitalia (ALI) to remain in the running. They will have access to Alitalia (ALI)'s financial books on May 24 and be able to submit binding bids at the end of June for the troubled airline. Remaining bidders are a consortium led by Texas Pacific Group and MatlinPatterson, a partnership between Air One (ADH) parent AP Holding and Intesa Sanpaolo, and a recently formed tie-up between Aeroflot (ARO) and UniCredit.
Air One (ADH) said it has converted options and purchase rights for 50 A320s into firm orders, boosting its commitment to the type to 90. The Italian carrier said the order signals that it is "increasing its activities not only in Italy but also abroad." It said the A320s eventually will replace its 737s and that by the end of 2012, it will operate flights to 35 destinations in Europe, compared to nine currently.
June 2007: Aeroflot (ARO) denied Italian media reports that it plans to drop out of the bidding for Alitalia (ALI), while revealing that it is working with the (EU) on maintaining (ALI)'s European traffic rights, if its consortium beats out Air One (ADH) and wins the privatization tender. "There is no hesitation to leave the bidding. There is no question of dropping out," Lev Koshliakov, an (ARO) Deputy Director General, told Thomson Financial. He said Italian bank Unicredit, which only holds a 5% stake in the consortium, could be the "nominal" owner of the traffic rights, but he would not explain further. Koshliakov said Aeroflot (ARO) wants to invest to develop Alitalia (ALI), rather than just own it. "Alitalia (ALI) and Aeroflot (ARO) are network companies, not like Air One (ADH) that is point-to-point. A combination of the networks would give synergies," he insisted. He said Aeroflot (ARO) is "confident" it will have the resources to renew (ALI)'s aging fleet, after receiving proposals from several international banks, noting that (ARO) has ordered 50 Sukhoi SuperJet 100s. Italy's Alenia Aeronautica holds 25% of Sukhoi Civil Aircraft. "This can be an interesting option and can be lucrative in terms of economics. Aeroflot (ARO) has special conditions as a launch customer," he said.
The Italian government extended the bid deadline for its stake in Alitalia (ALI) to July 12 from July 2, following this week's decision to allow USA equity firm MatlinPatterson back into the auction. Meanwhile, Air One (ADH) partner, Intesa Sanpaolo said it was open to accepting new partners into the consortium, Reuters reported. It was unclear whether MatlinPatterson was in line to join the Air One (ADH) group or would bid independently.
Meanwhile, RIA Novosti shed more light on Aeroflot (ARO)'s interest in Jat Airways (JAT). (ARO) signed a Memo of Understanding (MOU) with the Serbian carrier to acquire up to 75% of the airline and commit $100 million toward the purchase of short-haul and/or regional airplanes.
Later, three weeks after insisting it would see the process through to the end, Aeroflot (ARO) announced it would withdraw from the bidding for the Italian government's stake in Alitalia (ALI). "Aeroflot (ARO) and its advisers have not had access to critical information with respect to the commercial and operational aspects of Alitalia (ALI)'s business to confidently formulate a well supported business proposal to successfully restructure Alitalia (ALI)," the Russian carrier said in a statement. It said the "conditions for the sale" would have limited its restructuring plans for (ALI), and that despite its withdrawal, it remains committed to expanding activities in Europe "by increasing its operational activities as well as acquiring strategic assets."
Two potential buyers now remain: A consortium led by USA investment group MatlinPatterson, and AP Holding, the Italian holding company run by Air One (ADH) owner, Carlo Toto. Deadline for binding bids is July 12.
The (EC) denied a Ryanair (RYR)/Aer Lingus (ARL) merger on the grounds that two major carriers based in the same country and airport, presented an anticompetitive situation. Competition Commissioner, Neelie Kroes did not answer a question at a Brussels news conference concerning a similar problem with Air One (ADH) and (ALI), each of which operates bases at Rome Fiumicino and Milan Malpensa.
July 2007: Air One (ADH) parent AP Holding later withdrew from the bidding for Alitalia (ALI), leaving the Italian government scrambling ahead of the July 23 deadline for final offers. According to an AP Holding release cited by widespread press reports in Italy, the company said it determined that turning around the flag carrier would "require different acquisition conditions that would make possible Alitalia (ALI)'s sustainable and competitive growth." It did not elaborate, and the government did not release a statement last night. Following two extensions, the auction for the government's 49.9% stake in (ALI) was left in tatters. Aeroflot (ARO) pulled out last month, saying it lacked "access to critical information with respect to the commercial and operational aspects of Alitalia (ALI)'s business." The week before, the government had invited MatlinPatterson (MP) Global Advisors back to the auction. That group withdrew in May, when potential partner Texas Pacific Group (TPG) chose not to bid. Whether or not MatlinPatterson, or anyone else, plans to bid formally for Alitalia (ALI) was unclear. Transport Minister, Alessandro Bianchi said (MP) "don't seem to give big signs of life," according to Reuters. (ALI) reportedly is losing approximately -€2 million/-$2.8 million per day.
"Thomson Financial" reported that Air One (ADH) is targeting a 10% to 15% year-over-year rise in sales from €612 million in 2006 and expects full-year profit to increase from last year's €7 million. (ALI) reported a net loss of -€625.6 million last year.
A320-216 (3178, EI-DSH), delivery.
September 2007: A320-216 (3213, EI-DSI), delivery.
November 2007: 1st 6 months = 1.87 billion (RPK)s (+16.6%) traffic; 3.24 million passengers (+15.5%).
A320-216 (3295, EI-DSJ), delivery.
December 2007: Air France (AFA)/(KLM)'s plan to concentrate Alitalia (ALI)'s operations at Rome Fiumicino (FCO), appear to have won the backing of (ALI) Chairman, Maurizio Prato, who told "Corriere della Sera" that the Franco-Dutch bid "is based on Alitalia (ALI)'s own plan with integrations and changes," while rival Air One (ADH) presented a bid containing "some generic statements" and (ALI) "still need[s] to understand how the [Air One (ADH)] plan will actually work."
(AFA)/(KLM), Air One (ADH) parent, AP Holding, and a consortium headed by Italian attorney Antonio Baldassarre, submitted separate bids to purchase the state's 49.9% share in Alitalia (ALI), which three months ago said it was "no longer able to operate efficiently out of two hubs." Air One (ADH)'s plan reportedly calls for maintaining Milan Malpensa (MXP)'s hub status.
"The bottom line of [(AFA)/(KLM)'s] plan is that there will still be an Alitalia (ALI)," Prato told the paper. Air One (ADH), he said, planned to increase and renew the fleet, while remaining strong at both (FCO) and (MXP). No other details were provided and he confirmed that (ALI) would consider the Baldassare offer as well, according to press reports from Rome.
Intesa Sanpaolo, the bank behind Air One (ADH)'s bid, defended its plan. CEO, Corrado Passera told reporters, "Air France(AFA)/(KLM)'s bid would make Alitalia (ALI) a unit within a rival group . . . It would be like giving up, like saying, 'We have mismanaged it for many years and now let's throw it away'." The (ALI) board has suggested it will meet this week to select a negotiating partner.
In anticipation of the decision of the Alitalia (ALI) board on the bidder with which (ALI) will enter exclusive talks for sale of the government's 49.9% stake, Air France (AFA)/(KLM) and Air One (ADH) each outlined their plans for the loss-making flag carrier. (AFA)/(KLM)'s nonbinding offer includes purchase of 100% of the shares of (ALI) through an exchange offer and 100% of its convertible bonds - - although it failed to mention its share price offer - - in addition to an immediate injection of "at least" €750 million/$1.08 billion through a capital increase open to all shareholders and to be fully underwritten by the group. It stressed that it is committed to reposition Alitalia (ALI) "as a strong national flag carrier with world coverage" and said a large part of its investment will be used to upgrade cabin comfort and ground services. It will renew (ALI)'s MD-80 short/medium-haul fleet, as well as its 767 long-haul fleet. "After the recovery phase, further investments will ensure the growth of the fleet and enable Alitalia (ALI) to expand its network from a healthy position," (AFA)/(KLM) said. It also said its recovery and re-launch plan will not add any more job cuts to (ALI)'s current plan, which reportedly foresees some -1,700 redundancies.
AP Holding, which controls Italy's largest privately held carrier, Air One (ADH), said it offered €0.01 per share and plans a total investment of €5.3 billion by 2012, encompassing a capital increase of at least €1 billion and €3 billion for the purchase of 130 new airplanes (90 A320s, 20 A330s and 20 regional airplanes). It would re-launch the Alitalia (ALI) brand and pledged that the new airline "will immediately become the fourth [largest] European full-service operator." (ADH) anticipates that integration of the two carriers will lead to a nearly -€900 million reduction in operating costs owing to the synergy between the two networks, a new operating model with six domestic bases (Milan, Rome, Catania, Venice, Naples, Turin), consolidation of (ALI) Servizi and Air One (ADH) Technic and other initiatives. Its plan anticipates that some 2,750 employees of (ALI) Fly, the airline entity, will be affected by the restructuring along with 1,050 at (ALI) Servizi.
The world now will have to wait until next month to learn the identity of Alitalia (ALI)'s savior, as the Italian government decided to hold off until at least mid-January to determine with whom to negotiate the sale of its 49.9% stake. One day after the (ALI) board opted to defer its own vote, while it waited for an analysis from Citigroup, the office of Prime Minister, Romano Prodi announced that the government "will evaluate the claims made by the board . . . [and] expects to conclude its assessment within the first half of January." Air France (AFA)/(KLM) and Air One (ADH) parent, AP Holding remain in contention. The Prime Minister's office added that "the government will be thorough and will see whether the proposal of the [selected bidder] . . . conforms to the general interest." While a recent meeting between Prodi and French President, Nicolas Sarkozy will not feature discussion of Alitalia (ALI), according to comments from Prodi, cited in widespread press reports, Air One (ADH) head, Carlo Toto said he does expect an audience with the government before a decision is made. "We also believe that . . . for the proper evaluation of our proposal, it would be useful to explain our position to the government," he said, according to "Bloomberg News." Some unconfirmed press reports from Italy, said the government may go with the rumored preference of the (ALI) board - - (AFA)/(KLM) - -, but will ask the Franco-Dutch group to offer to Air One (ADH) assets it may not require, such as extra slots.
The Board of Directors of Alitalia (ali) has decided to choose Air France (AFA)/(KLM) as its preferred bidder and considered its offer the best guarantee for the national carrier's future, Italian media reported. The decision came after a board meeting, which lasted almost seven hours and saw Air France (AFA)/(KLM) win out over a rival offer presented by the AP Holding, the parent company of Italy's biggest private carrier Air One (ADH). The board's decision is, in fact, only a suggestion to the government, which has the final word on the sale of the Treasury Ministry's controlling 49.9% stake in Alitalia (ALI). The Italian government said earlier that it would make a decision on the board's recommendation by the middle of January. (AFA)/(KLM) said it is a top priority to renew Alitalia (ALI)'s fleet, and that the combination of the three European brands "will be able to offer clients an unparalleled international network." (AFA/(KLM)'s plan calls for returning Alitalia (ALI) to profitability by 2010, and includes total investments of 6.5 billion euros through 2015.
However, many analysts believed the AP Holding will now launch a political offensive to persuade the government to go against the Alitalia (ALI) board's recommendation. The AP Holding confirmed it will be offering 1 euro cent per Alitalia (ALI) share, compared to a reported 35 cents by (AFA)/(KLM), and that it expected Alitalia (ALI)to break even by 2009 and to return to profit by 2010. The AP Holding would invest a total of 5 billion euros in Alitalia (ALI), 1 billion to boost the company's capital and 4 to renew its fleet.
The Italian government owns a 49.9% share and has decided to sell most stake at the end of last year. An auction failed this summer after bidders complained they were denied access to Alitalia (ALI) books and not guaranteed full control of the airline.
2 A320-216s (3328, EI-DSK; 3343, EI-DSL), deliveries.
January 2008: 2007 statistics: 4.08 billion (RPK)s passenger traffic +20.7%; +20.3% capacity (ASK)s; +.2 load factor for 57.5% LF. SEE ATTACHED COMPARISON CHART TO SELECTED OPERATORS - "ADH-2007-STATS."
A320-216 (3362, EI-DSM), delivery.
February 2008: The Alitalia (ALI) board met to approve its 2008 budget and said it would look to raise about €750 million/$1.1 billion over the next five months, in order to maintain its cash in hand "at adequate operating levels," as speculation swirled in Italy about the effect that the fall of Prime Minister Romano Prodi's government will have on (ALI)'s merger with Air France (AFA)/(KLM).
(ALI) said its cash in hand dropped -7.1% from the end of November to €367 million. To complicate matters, Air One (ADH) continues to press its case to acquire the government's 49.9% stake in (ALI) and has filed a lawsuit in regional court challenging the government's decision to negotiate exclusively with (AFA)/(KLM), according to a statement cited by media reports from Rome. "We're asking for a procedure which can ensure that, after clear rules are fixed, several offers can be compared instead of negotiations with just one party," Air One (ADH) said, according to Dow Jones. The CEO of its financial backer, the Intesa Sanpaolo bank, told "Corriere della Sera" that "there are still many questions open . . . Everything still has to be sorted out." Prodi backed the (AFA)/(KLM) bid, and his departure and the possibility of new elections may affect the sale. "If the Prodi government goes to elections, nothing stops. The procedure [for (ALI)] is fixed and it would be unreasonable to stop it," Transport Minister, Alessandro Bianchi said, according to Thomson Financial. "If, instead, there is another government, then there is the need to re-discuss everything."
Air One (ADH) has support in the north, where local interests are worried about (AFA)/(KLM)'s plan to scale down (ALI)'s operation in Milan.
A320-216 (3412, EI-DSN), delivery. A330-202 (272, A6-EYV), (ILF) leased.
March 2008: The Alitalia (ALI) board unanimously agreed to accept an offer by Air France (AFA)/(KLM) to acquire control of the ailing Italian carrier - - subject, however, to a number of what the parties call "effectiveness conditions" that must be fulfilled by March 31. "The board has carried out its evaluation of the binding offer also in light of the worsened airline sector and macro-economic scenario, as well as considering the critical situation of the company and available alternatives," (ALI) said in a statement, noting that the proposal offers "the appropriate solution" to preserve its assets and to promote both rapid and stable restructuring and long-term development. (AFA)/(KLM) is proposing to acquire 100% of Alitalia (ALI)'s capital via an exchange offer with a parity of one (AFA)/(KLM) share for 160 Alitalia (ALI) shares, valuing the latter's equity at €139 million, or €0.10 per share. (AFA)/(KLM) also will acquire all convertible bonds issued by Alitalia (ALI) at €0.3145 per bond, which was the recent market price, or a total of €608 million. In addition, (AFA)/(KLM) will underwrite a €1 billion capital increase following the closing of the offer. "Its membership of the Air France (AFA)/(KLM) Group together with the implementation of the [new three-year industrial] plan, should enable Alitalia (ALI) to return to operating profit as early as 2009," (AFA)/(KLM) said. But plenty of conditions will have to be fulfilled first, including agreements with unions at both (ALI) Fly and (ALI) Servizi. The Industrial Plan 2008 to 2010, which was approved by the board, foresees a reduction of (ALI) Fly's workforce by -1,600 employees by 2010. Reportedly, (AFA)/(KLM) Chairman, Jean-Cyril Spinetta and (ALI) Chairman, Maurizio Prato are scheduled to meet with (ALI)'s nine trade unions.
(AFA)/(KLM) also wants a "formal written" undertaking from the appropriate Italian governmental authority to maintain (ALI)'s current portfolio of air traffic rights and to address future traffic requests in a transparent and nondiscriminatory manner. Further, it wants a signed agreement between (ALI) and Aeroporti di Roma, operator of both Roman airports, firming service standards, as well as a similar accord among (ALI), Fintecna, and (ALI) Servizi. Lastly, (AFA)/(KLM) wants an "applicable solution to definitely remove the risk connected to the Milan airports operator (SEA) claim." (SEA) is seeking €1.25 billion in damages from (ALI) for cutting flights at Milan Malpensa (MXP).
(AFA)/(KLM)'s industrial plan for the restructuring and relaunch of (ALI) calls for a single hub at Rome Fiumicino and a drastic cutback of medium- and long-haul flights from (MXP). It also plans to develop (ALI) low-cost subsidiary, Volare Airlines (VLR) similarly to Transavia (TAV). Both (AFA)/(KLM) and (ALI) said they expect the European Union (EU) clearance by July.
Silvio Berlusconi, who is favored to take over as Italian Prime Minister following next month's elections, said that he will reject Air France (AFA)/(KLM)'s acquisition of Alitalia (ALI), if and when he assumes office. A day after calling on Italian bidders to step forward and make an offer, Berlusconi told the "ANSA" news agency, "The response to Air France (AFA)/(KLM) that the next Prime Minister will give, will be a clear 'no,' not because it's against France, but because it's against the conditions as they were presented." He said he was continuing to attempt to muster an Italian bid for the carrier and would be able to present one "in a few days," according to press reports. "I am absolutely confident we can do it with the support of important banks. I am now involved, so it will get done," he said. Outgoing Prime Minister, Romano Prodi reportedly told Berlusconi recently that new offers will be considered, but they should be serious and be presented soon, the "AGI" news agency reported. (AFA/(KLM) said a decision must be made soon. Speaking in Biarritz, (AFA)/(KLM) Commercial Director, Christian Boireau told "Thomson Financial," "What we are asking of Alitalia (ALI) is that it make the necessary changes so as to be able to guarantee this future . . . We know what we can do and this plan must be either accepted or refused, but now is the time, not in two months or in a month."
April 2008: Air One (ADH) will increase its presence from Milan Malpensa (MXP) this summer, using opportunities available as a result of Alitalia (ALI)'s downscaling at the airport. The Italian carrier will operate 138 weekly flights from (MXP) on a network featuring domestic, European and long-haul routes. Last month, Network, Marketing & Business Development Director, Giorgio de Roni said that (ADH) had applied to the USA Dept of Transportation for authority to launch flights from (MXP) to Boston and Chicago in the USA. (ADH) has leased 2 A330-200s and is seeking permission from the USA authorities to launch in June. The new transatlantic "open skies" agreement eliminates the designation requirements, but still requires licensing. Alitalia (ALI) previously announced its intention to hub exclusively in Rome.
Privately held (ADH) intends to launch fives-times-weekly flights to Boston on June 14, and six-times-weekly to Chicago O'Hare (ORD) on June 21 aboard new A330-200s. Service to Boston will be in codeshare with US Airways (AMW)/(USA), and flights to (ORD) will include United Airlines (UAL)'s code. (ADH)'s first new A330 arrived in February and a second is scheduled for delivery at the end of May. Reportedly, it also intends to launch flights to Miami next winter and Washington Dulles or Toronto in summer 2009. It has a base at Milan Linate from which it operates 12 domestic and two European routes. Air One (ADH) stressed that its Malpensa (MXP) expansion project is on a "standalone" basis and unrelated to any interest it may maintain in bidding for Alitalia (ALI).
Air One (ADH) will launch daily Milan Malpensa - Brussels on June 1 aboard a two-class CRJ-900.
2 A320-216s (3463, EI-DSO; 3482, EI-DSP), deliveries.
May 2008: The European Commission (EC) has given Italian officials until May 19 to respond to its request for more information on the €300 million bridge loan the outgoing government awarded Alitalia (ALI) last month. Meanwhile, speculation continues on possible interest in (ALI), including from Air One (ADH) and Lufthansa (DLH). Air One (ADH) is in contact with Bruno Ermolli, the consultant charged by incoming Prime Minister, Silvio Berlusconi to form an Italian consortium willing to acquire (ALI), Italian media reported, citing Air One (ADH) board member, Giovanni Malago. (DLH) declined to comment on a report in "Il Messaggero" that it had discussed a possible bid with Italian bank UniCredit, which in turn denied the rumor.
Air One (ADH) is an independent airline operating high frequency scheduled domestic services to around 25 destinations and international services to six European cities. Regional points are served under "Air One CityLiner."
Employees = 1,814.
(IATA) Code: AP - 867. (ICAO) Code: ADH - HERON.
Parent organization/shareholders: AP Holdings (99.77%); & others (0.23%).
Alliances: Lufthansa (DLH).
Main Base: Milan Linate Airport (LIN).
Hub: Rome Fiumicino Leonardo Da Vinci Airport (FCO).
Domestic, Scheduled Destinations: Albenga; Alghero, Bari, Bologna, Brindisi, Cagliari, Catania, Cuneo; Florence; Genoa, Lamezia Terme, Lampedusa, Milan, Naples, Palermo, Pantelleria, Pescara, Reggio Calabria, Rome, Trapani, Trieste; Turin, & Venice.
International, scheduled destination: Nice.
Air One (ADH) will launch its first service to the USA with five-times-weekly, Milan Malpensa (MXP) - Boston flights aboard A330-200s from June 14. It will start six-times-weekly, (MXP) - Chicago O'Hare service aboard A330-200s from June 21.
Air One (ADH) will launch service from Milan Malpensa to Brussels (from June 2), Athens (June 7), Thessalonica (June 8), Boston (June 14), Chicago O'Hare (June 21), Bari (July 8), and Lamezia Terme (July 8). Starting next month, it will offer summer flights from Rome Fiumicino to Athens, Corfu, Heraklion, Malta, Larnaca, Spalato, Dubrovnik, Ibiza, and Palma de Mellorca and from Milan Linate to Lampedusa and Pantelleria.
An Italian administrative court ordered that a new tender be organized for Volare (VLR) within 15 days, confirming that Alitalia (ALI)'s 2006 acquisition of (VLR) violated procedure, "Reuters" reported. (ALI) rival, Air One (ADH) also wanted Volare (VLR) and brought the case to court.
Air One (ADH) will outsource its international cargo business to Cargo Counts, a subsidiary of Lufthansa Cargo (LUB), as part of a three-year Total Cargo Management agreement encompassing sales, marketing, freight handling, accounting, Information Technology (IT) and controlling as well as flight data, yield and capacity management. Collaboration begins June 14 with the launch of (ADH)'s five-times-weekly, Milan Malpensa (MXP)- Boston service and subsequent six-times-weekly, (MXP) - Chicago O'Hare flights aboard A330-200s.
June 2008: Italy's Air One (ADH) has just released its 2007 results, calling its +€6.8 million/+$10.6 million net profit "satisfactory." It reported a +€6 million profit in 2006. Revenue rose +22.6% to €749.5 million during a year, in which it made "important investments in widening the network, renewing the fleet . . . and quality services offered. These three factors have allowed (ADH) to increase both market share [to 37% domestically from 33%] and turnover considerably," it said. Operating income dropped -24% to +€19.7 million from "circa" +€26 million in 2006, owing to fleet depreciation costs. Passenger numbers climbed +20.8% year-over-year to "over" >7.5 million aboard a fleet numbering 57 airplanes at year end, following the addition of 10 A320s and four CRJ-900s. It served 23 domestic and 15 international destinations as of December 31. Those numbers have changed to 21 and 18 respectively as (ADH) enhances its long-haul program and its stature at Milan Malpensa, where it plans to be the largest airline by 2012.
(ADH) will launch its first two long-haul routes later this month from Milan Malpensa to Boston and Chicago O'Hare aboard A330-200s.
Later, Air One (ADH) delayed launch of its new USA service from Milan Malpensa to Boston and Chicago, originally scheduled for June 14 and June 21 respectively, to June 27 and June 26, owing to delays in the delivery of new business class (C) seats for the A330-200, that will operate the flights.
(ADH) cemented its commitment to increasing its international profile with a firm order for 12 A350-XWB-800s plus 12 options and 12 A330-200s with eight options. Airbus (EDS) said the airplanes will be used to "develop a comprehensive long-haul route network." The firm order, is worth $4.8 billion at list prices, with the deal potentially reaching $8.6 billion, if all options are exercised. The newly ordered A330-200s will feature a two-class cabin seating 253 and the A350 XWBs will offer two classes with up to 287 seats. (ADH) also has 65 A320s on order, along with 25 options that it expects to firm.
President, Carlo Toto said the new order "is a key element in our company's growth strategy, with a view to achieving major developments in the intercontinental market over the next few years."
3 A320-216s (3502, EI-DSR; 3515, EI-DSS; 3532, EI-DST), deliveries.
July 2008: Air One (ADH) launched a mobile check-in service available on Internet-capable phones and Personal Digital Assistant (PDA)s.
August 2008: Italian Prime Minister, Silvio Berlusconi said that his government is in talks with a "large foreign company" about forming an alliance with Alitalia (ALI). "We are in talks with a big foreign company for an alliance on an international level, exactly the opposite of the hypothesis of the fire sale to Air France (AFA)/(KLM), which the previous government wanted, which among other things, included -7,000 job cuts," Berlusconi said in a television interview. "We already have the industrial plan. We have the investors. We have the needed capital," he stressed, conceding there would be "job cuts for sure. We'll try to keep them to a minimum, but the choice is between 20,000 people being fired or a number much smaller than that." (AFA)/(KLM) is not involved. "Air France (AFA)/(KLM) is not currently in talks with Alitalia (ALI)," a spokesperson told "Dow Jones."
Air One (ADH) reaffirmed its intention to play a role in the rescue if the failing Italian flag carrier, while denying reports it also is in financial difficulty, according to "Reuters." "Ours is a solid company that is facing the difficulties in the sector with a rare vitality and reactive capacity," Chairman, Carlo Toto wrote in a letter to employees. "Despite investing a lot in growth, Air One (ADH) has a level of debt that is absolutely healthy and, contrary to as insidiously maintained by some, is in a large part guaranteed by the value of new airplanes in the fleet." Toto confirmed that "Air One (ADH) is willing to do its part in a re-launch of Alitalia (ALI)." Italian newspapers speculated on various scenarios, including a deal in which Alitalia (ALI) takes over Air One (ADH)'s key assets, such as its fleet and orders in exchange for an equity stake.
Sabre Airline Solutions reached agreement with Air One (ADH) to launch Sabre's Mobile Check-In solution featuring advanced check-in capabilities across multiple touch points. Technology is part of its SabreSonic customer sales and service solution and integrates with other SabreSonic self-service options including Web and kiosk check-in.
Air One (ADH) selected (GE)'s (CF6-80E1) to power its new 12 firm and eight option A330s. The firm engine order is valued at more than >$480 million at list prices. Deliveries will begin in 2010. The Italian carrier also signed a 15-year "OnPoint Solution" agreement for maintenance and overhaul of the new (CF6-80E1)s, as well as its leased (CF6-80E1)-powered A330s. The OnPoint agreement is valued at more than >$250 million over the life of the contract. (ADH) launched flights from Milan-Malpensa to Chicago O'Hare and Boston in June.
Air France (AFA)/(KLM), which bid unsuccessfully for Alitalia (ALI) in the spring, is willing to take a stake in an ongoing reorganization effort. "If it can be confirmed that the new company will be profitable, Air France (AFA)/(KLM) is ready to take out a minority stake in the new company's capital alongside the investors identified by the Intesa Sanpaolo bank," the group said. (AFA)/(KLM)'s interest coincided with Italian media reports that the government had amended its bankruptcy laws, paving the way for implementation of Intesa's rescue plan. The government's adviser reportedly is proposing to spin off (ALI)'s loss-making units and place them under bankruptcy protection and simultaneously create a new entity, dubbed Newco, for the airline. Sixteen Italian investors have indicated their willingness to inject up to €1 billion in Newco, which would combine a much smaller and restructured Alitalia (ALI) with privately held Air One (ADH), according to the reports. (ALI) management is scheduled to be briefed on the rescue plan.
September 2008: Lufthansa (DLH) is competing with Air France (AFA)/(KLM) to be a strategic partner with a reorganized Alitalia (ALI), whose board declared bankruptcy last month, the head of a key investor group told "La Repubblica." Roberto Colaninno, who reportedly leads the consortium of 16 Italians organized by Intesa Sanpaolo and prepared to invest €1 billion/$1.48 billion in the carrier, said, "We are negotiating with both, and they're going at the same speed . . . one of the two will do." (AFA)/(KLM) confirmed its interest in partnering with (ALI) last month. (DLH) did not comment. The (ALI) board released a statement saying it has "requested admission to the receivership procedure" outlined in last month's newly passed bankruptcy legislation and has "taken steps to file for insolvency at the Rome Court." The government named former Finance Minister, Augusto Fantozzi as (ALI)'s administrator, the "Associated Press" reported. According to "Agence France Presse," the new legislation allows bankrupt companies to speed up the selling of shares and employee reductions, while relaxing antitrust rules, which would allow Air One (ADH) to be combined into the new streamlined carrier. (ALI)'s loss-making components will be placed under bankruptcy protection and liquidated, according to reports.
Meanwhile, Intesa Sanpaolo CEO, Corrado Passera told the (ANSA) news agency that the bank would take 10% of a restructured (ALI) with a €100 to €150 million investment.
Later, The group of Italian investors including Air One (ADH) that reportedly had been willing to invest up to €1 billion/$1.4 billion in an Alitalia (ALI) restart, withdrew from negotiations with the carrier's labor unions Friday, leaving the troubled airline on the verge of collapse. Italian media reported that (ALI) Administrator, Augusto Fantozzi warned workers that there was no guarantee of flights because "no one will supply us with kerosene." Fantozzi told the labor groups that the carrier would be shut down if their talks with investment group (CAI) failed. (CAI) representatives said the unions did not appreciate the level of concessions necessary, but added that (CAI) was still open to the possibility of investing in an (ALI) rescue if workers reversed course and agreed to cuts.
Italian Prime Minister, Silvio Berlusconi accused (ALI) labor groups of "unreasonable behavior." Industry Minister, Claudio Scajola added, "What's certain is that this is a failed company . . . Either a deal is reached [between unions and (CAI)] or all of the workers are laid off."
Italy’s domestic air transport market is the third largest in the
European Union (EU), behind only Spain and France, and the country
is the fourth most visited in the world. Its economy, moreover, is larger than all but six other countries and is heavily dependent on international trade. In 2007, the Italian airline market generated 76 million passengers, including nearly 5 million each to and from the Americas, Asia and Africa. Eight Italian airports handled more than >5 million travelers last year — - at three facilities in Milan, two in Rome, and one each in Venice, Sicily, and Naples. Growth was healthy last year as well, with total traffic up +8% versus 2006. The spoils of this rich Italian market, in the wake of Alitalia (ALI)’s demise, could go to Air One (ADH). But that’s not inevitable. Though perhaps arm-twisted by politicians to participate in the latest Alitalia (ALI) restructuring, Air One (ADH) might have improved its strategic position, had the merger come to pass. The plan would have created a largely debt-free and cost-efficient airline with new planes and a tight grip on lucrative markets like the one between Rome and Milan. Left on its own, however, Air One (ADH) is a mid-sized carrier with $1.2b in annual revenue (compared to $33b for Lufthansa (DLH) and Air France/KLM) and presumably a lot of debt, though it hasn’t published any recent balance sheets. In 2007, when industry conditions were relatively favorable, it managed a net profit margin of less than 1%.
Fortunately, Air One (ADH) does have airplanes on order, including 45
more A320s, ten A330-200s, and looking far ahead, 12 A350s. Provided it can finance these deliveries, despite tight credit conditions, Air One (ADH) may be able to jump on Alitalia (ALI)’s abandoned routes relatively quickly. It may decide to buy some of Alitalia (ALI)’s planes and hire some of its workers as well. Already, Air One (ADH) is starting to fill the Alitalia (ALI) vacuum left at Milan Malpensa
by launching flights to Boston and Chicago. It has also expanded
aggressively within Italy and Europe during the past few years,
contributing to Alitalia (ALI)’s woes. But such aggressive expansion
entails considerable risk. In the meantime, other Italian carriers
like Sardinia-based Meridiana (ALS) (and its partner Eurofly (EFY)) and WindJet (WJT), a Low Cost Carrier (LCC) whose traffic jumped +20% in August, will also be trying to fill the void.
October 2008: Air One (ADH) will suspend its recently launched five-times-weekly, Milan Malpensa - Boston service from October 6 until April 4, 2009.
December 2008: Compagnia Aerea Italia (CAI) investor group officially took control of (ALI)'s flight assets, hours after two flight attendant (CA) unions reportedly agreed to back the deal and one day after buying Air One (ADH). The deals are worth a combined €1.05 billion and the restructured airline is scheduled to relaunch January 12. (CAI) reportedly still plans to choose a foreign partner and, according to CEO, Rocco Sabelli, is targeting a breakeven result in 2010, the "Associated Press" reported. The new (ALI) will operate 148 airplanes to 70 destinations.
3 A320-216 (3666, EI-DSY; 3695, EI-DSZ; 3732, EI-DTA), deliveries.
March 2009: Air France (AFA)/(KLM) announced that it completed the acquisition of a 25% stake in Alitalia (ALI) through a reserved share subscription worth approximately €323 million/$439.1 million. Its partnership with the restructured Italian carrier was announced in January but required approval from competition authorities. At that time, (ALI) said (AFA)/(KLM) would be entitled to nominate three of the 19 members of the board and two members of the executive committee. (AFA)/(KLM) said that the stake grants it "greater access to the Italian market thanks to (ALI) which, following its acquisition of Air One (ADH), has reinforced its position on the domestic market."
February 2010: The Alitalia Group intends to strengthen its position at both Milan Linate and Milan Malpensa (MXP) with a three-year development plan calling for a "dual-brand and customer hub model" at (MXP), including a repositioning of Air One (ADH) as a "Smart Carrier" offering low fares on short-/medium-haul routes while reinforcing the Alitalia (ALI) brand and offering on intercontinental flights.
(ALI) will base two new A330s featuring its new business class (C) at (MXP) and launch flights to Miami in June, adding to its current five intercontinental destinations.
The three-year plan confirms the group's intention "to maintain its dominant position in the Milan market with new offerings, articulated on the basis of different demand profiles and strongly oriented towards growth," it said. The company is aiming to grow passenger traffic at both Milan airports from 6.9 million in 2009, to 9 million in 2012, and increase the number of destinations from 39 to 47.
At Milan Linate, it foresees a +11% rise in passengers to 6 million in 2012 and at (MXP) it plans to double passengers to 3 million in 2012, with 20% of that growth this year. Destinations will lift from 20 to 32 and the number of flights will increase nearly +50% from 16,770 in 2009 to almost 25,000 in 2012.
From (MXP), the group "will offer a thoroughly renewed product, tailored both to the business (C) and leisure passenger, according to a dual brand and customer hub model, with the possibility for the customer to create, within the same airport, the ideal combination of flights, fares and connections." It added that the approach will start March 28 with "inauguration of the new Smart Carrier Air One (ADH) flights from the (MXP) hub to 14 destinations in Italy and the Mediterranean basin." In 2011, (ADH) plans to start service to 10 new international destinations including Munich, Warsaw, Budapest, Istanbul, and Sofia.
While Air One (ADH) will offer flights at "particularly advantageous fares" starting at €25/$34.30 to domestic destinations and €70 for international, passengers "will not have to forgo the advantages offered by traditional companies," it said. (ALI) emphasized that "differently from low-cost companies, (ADH) will in fact provide, without additional cost, seating assignment, baggage transport, MilleMiglia miles and airport check-in." Its new business model from (MXP) also will allow passengers to buy tickets both directly through the Internet or dedicated call centers and indirectly through travel agencies.
(ADH) has transferred 21 of its 28 A320-200s and 2000 employees to Alitalia (ALI). (ADH) will continue to operate seven A320-200s and a fleet of three 737-300s and fourteen 737-400s on behalf of parent (ALI).
March 2010: Alitalia (ALI) will increase summer capacity by +5.5% year-over-year and will operate some 2,500 weekly flights on 140 routes to 82 destinations on its summer schedule beginning March 28. Thrice-weekly, Milan Malpensa (MXP) - Miami service will launch June 3 and five-times-weekly, Rome Fiumicino (FCO_ - Los Angeles flights begin June 5. (ALI) also will launch new service from (FCO) to Malaga (daily) and Vienna (twice-daily) on March 28 and will resume seasonal flights from (FCO) and Milan Linate to Lampedusa and Pantelleria as well as its four-times-weekly Venice - Cagliari service. (ALI)'s Air One (ADH) subsidiary will begin operating from (MXP) to Trapani, Alghero, Olbia, Palma, and Ibiza. Air One (ADH) will operate five A320s out of (MXP) on 200 - 250 weekly flights.
May 2010: Air One (ADH) has been relaunched by Alitalia (ALI) as a “smart carrier” on March 28 offering point to point connections from Milan Malpensa and connectivity to the remaining (ALI) services from the airport using a fleet of five A320-200s (including two airplanes recently transferred to (ADH) from Volare Airlines (VOR). (ALI) code shares on all of the following routes and (ADH) no longer operates other scheduled services under its own code:
Milan Malpensa - Alghero: daily, A320-200 service started on May 14;
Milan Malpensa - Bari: 2x daily A320-200 service started on March 28 (replacing (ALI));
Milan Malpensa - Brindisi: daily, A320-200 service started on April 16;
Milan Malpensa - Catania: 2x daily, A320-200 service started on March 28 (replacing (ALI));
Milan Malpensa - Ibiza: daily seasonal, A320-200 service between July 19 and September 12;
Milan Malpensa - Lamezia Terme: daily, A320-200 service started on April 16;
Milan Malpensa - Naples: 2x daily, A320-200 service (existing Air One (ADH) service);
Milan Malpensa - Olbia: daily seasonal, A320-200 service between July 19 and September 12;
Milan Malpensa - Palermo: 2x daily, A320-200 service (existing Air One (ADH) service);
Milan Malpensa - Palma de Mallorca: daily seasonal, A320-200 service between July 19 and September 12;
Milan Malpensa - Tirana: daily, A320-200 service started on March 28 (replacing (ALI));
Milan Malpensa - Trapani: daily, A320-200 service started on April 16;
Milan Malpensa - Tunis: daily, A320-200 service started on March 28 (replacing (ALI)).
Air One (ADH) has also announced plans to expand this concept with additional A320-200s and destinations in 2011 with Bucharest, Budapest, Istanbul, Munich, Sofia, and Warsaw as potential destinations. (ADH) has retired its last 737-300. It still operates ten 737-400s on behalf of (ALI) but these airplanes are also expected to be replaced by additional A320 family airplanes.
(ADH) expects to take delivery of 10 A320s and two A330s in 2010.
January 2011: Air One (ADH) is operating three international routes: Milan Malpensa (MXP) to Tunis, Cairo, and Tirana.
February 2011: After Alitalia (ALI) merged with rival Air One (ADH) two years ago, (ADH) was retired but then re-launched, re-fashioned as a “smart carrier” (one interpretation: a low-fare carrier (LCC) without the low costs). (ADH) now operates a number of routes from Milan Malpensa and just announced a new base in Pisa, offering flights to Catania, Olbia, and Lamezia in Italy as well as Athens, Palma de Mallorca, and Tirana abroad. It’s also adding a number of new Mediterranean tourist routes from Milan.
March 2011: Air One (ADH) Maintenance & Engineering won a heavy maintenance contract from Air Capital Group covering one MD-83 and one MD-82. It also won a heavy maintenance and SFAR 88 Modification contract from Blair Investors Corporation, covering one 737-200 VIP.
July 2011: Air One (ADH) Maintenance & Engineering received heavy maintenance contracts for two MD-80s from Air Capital Group (CGP), a "C" airplane maintenance check for a 737-500 from Mid Air and a heavy maintenance "C" check for a 727F freighter from the Mexican Air Force (MXA).
August 2011: Air One (ADH) Maintenance & Engineering has heavy maintenance contracts from Air Capital Group (CGP) for two former American Airlines (AAL) MD-80s on lease to Venezuela-based Aserca Airlines (SEZ) and one 737-200 VIP for the Mexican Air Force (MXA).
October 2011: The Alitalia Group reported a third-quarter consolidated net income of +€69 million/+$95.9 million), up +76.9% compared to +€39 million in the year-ago quarter. The group called its P&L figures “particularly satisfactory.” Operating profit rose +60.7% to +€90 million.
Total operating revenue rose +12% to €1.08 billion during the quarter on a +7.3% increase in passengers carried to 7.6 million. Load factor improved +1.6 points to 77.5% LF year-over-year.
For the nine-month period ended September 30, the group reported a dramatic reduction of its net loss to -€25 million from a -€125 million deficit recorded in the year-ago period. Operating results came in at +€21 million, reversed from a -€74 million loss year-over-year. The group pointed out that “such a result is even more significant” considering the combined impact of cost increases (in particular the cost of fuel, which increased by more than >+40%) and the crises in North Africa and Japan earlier this year.
Revenue for the first nine months of 2011 rose +10.7%, compared to €2.7 billion for the year-ago period. Enplanements inched up +1.1% to 18.8 million, driven by a +9.4% growth of international traffic in spite of the impact of the unrest in the North African markets.
The group did not provide separate revenue figures for its full-service carrier Alitalia (ALI) and low-cost carrier (LCC) Air One (ADH) Smart Carrier but said (ADH) increased passengers carried in the first nine months by +47% to more than >1 million. Air One (ADH) was re-launched as an (LCC), based at Milan Malpensa, in 2010; it opened a second base at Pisa July 1.
Looking forward, the group said the fourth quarter is showing “a sharp slowdown in high yielding business demand” and the persistence of high fuel cost levels.
It also said the board approved its 2012 - 2015 business plan. Over the next three years, (ALI) will put a higher emphasis on international expansion with new international (ALI) routes and “also through new operating bases of Air One (ADH),” a growth in the number of long-haul destinations and an upgrade in (ALI)’s long-haul fleet.
January 2012: Air One (ADH) has announced a new base at Venice Marco Polo and additional new routes:
Milan Malpensa - London Gatwick: 2x daily A320-200 service starting on March 25;
Milan Malpensa - Munich: 2x daily A320-200 service starting on March 25;
Milan Malpensa - Warsaw: daily A320-200 service starting on June 1;
Venice Marco Polo - Athens: 3x weekly A320-200 service starting on June 15;
Venice Marco Polo - Barcelona: daily A320-200 service starting on May 4;
Venice Marco Polo - Brussels National: daily A320-200 service starting on May 4;
Venice Marco Polo - Bucharest Otopeni: 4x weekly A320-200 service starting on June 15;
Venice Marco Polo - Istanbul Sabiha Gökcen: 5x weekly A320-200 service starting on June 15;
Venice Marco Polo - Menorca: 4x weekly seasonal A320-200 service between July 13 and September 9;
Venice Marco Polo - Palma de Mallorca: 4x weekly seasonal A320-200 service between July 13 and September 9;
Venice Marco Polo - Prague: 4x weekly A320-200 service starting on May 4;
Venice Marco Polo - Sofia: 3x weekly A320-200 service starting on June 16;
Venice Marco Polo - Tirana: 3x weekly A320-200 service starting on May 5;
Venice Marco Polo - Warsaw: 3x weekly A320-200 service starting on June 16;
It has not launched its previously announced Milan Malpensa - Zagreb, however.
May 2012: Apart from the Volotea (VLZ) new Venice base (which launched at the beginning of April), the big news is the decision by Alitalia (ALI) to make Venice Marco Polo airport a base for its self-proclaimed ‘smart’ carrier, Air One (ADH). (ADH) is also taking over Alitalia (ALI)’s domestic services to Brindisi, Cagliari and Palermo.
Air One (ADH) started services to Reggio di Calabria from Pisa.
June 2012: Air One (ADH) has added three new international routes from its base at Venice (VCE). It has started non-stop flights to Athens (ATH), Istanbul Sabiha Gökçen (SAW) and Warsaw (WAW) using its fleet of A320 airplanes. The Greek and Polish capitals will each be served with three weekly flights, while Istanbul is granted five weekly flights. The only competition comes from Aegean Airlines (CRM) that operates three weekly flights on the Athens route. This summer, (ADH) will operates to 12 destination from Venice, of which three are domestic (Brindisi, Cagliari and Palermo), with routes to Mahon and Palma starting in July, and Brussels in September.
July 2012: On 13 July, Alitalia (ALI)’s subsidiary, Air One (ADH) expanded its summer offering from Venice (VCE) as it launched four-weekly services each to Palma de Mallorca (PMI) and Mahon (MAH) in the Balearic Islands. Both routes are served with A320s and will end on 9 September. Offered on a year-round basis, Barcelona is (ADH)’s only other Spanish destination from Venice. A day later, Air One (ADH) also launched seasonal services from Milan Malpensa (MXP) to Mykonos (JMK) in the Greek Cyclades Islands. Four weekly A320-operated flights on the 1,700-kilometer route will be offered until early September. The main competitor on the route is easyJet (EZY) with 12 weekly flights, but Aegean Airlines (CRM) and Meridianafly (ALS) each offer weekly services.
September 2012: Air One (ADH) has announced that it will base an A320-200 at Catania Fontanarossa airport (CTA) from October 1, making use of the void left by the suspension of services by Sicilian low-cost carrier Windjet (WJT). It will serve Turin Caselle (TRN) twice daily and Verona Villafranca (VRN) on a daily basis. From December 6, it will then base a second A320-200 in Catania and also serve Venice Marco Polo Tessera (VCE) twice daily. (ADH) already serves Catania twice daily from its main base at Milan Malpensa (MXP) and daily from Pisa Galileo Galilei International (PSA). Its third base is Venice Marco Polo Tessera airport (VCE).
September 2012: Air One (ADH) continued expanding its network as it began operating the 1,700-kilometer route from Milan Malpensa (MXP), to Kiev Boryspil (KBP) on 17 September, making it (ADH)’s first route to the Ukraine. Four weekly flights are now offered to the Ukrainian capital with (ADH)’s 180-seat A320s. Ukraine International Airlines (UKR) already operates the route with six weekly frequencies.
On 18 September, (ADH) launched a twice-weekly operation to Belgrade (BEG), the capital of Serbia, in direct competition with Jat Airways (JAT)’s four flights a week. The only other Italian airport to be connected with Belgrade is Rome Fiumicino.
October 2012: Air One (ADH) added its third route to Albania’s capital Tirana (TIA) on 28 October when (ADH) launched three weekly flights from Venice (VCE) in northeast Italy. The operator of 180-seat A320s, which already serves Tirana from its other two bases at Milan Malpensa and Pisa, competes on the route with Belle Air’ (BEL)'s daily operations.
December 2012: Air One (ADH) commenced flights on the fifth route from its southern Italian base in Catania (CTA) on 6 December and now offers twice-daily services to Venice (VCE). Services on the 900 km domestic route are operated with one of (ADH)’s 10 A320s. While there is no competition on the route to begin with, Volotea (VLT) is scheduled to begin five weekly services on 19 December.
February 2013: Alitalia (ALI) reported a 2012 net loss of -€280 million/-$370 million, worsened from a loss of -€69 million in 2011.
As the results were announced, (CEO), Andrea Ragnetti submitted his resignation. According to a company statement, (ALI) and Ragnetti “have mutually agreed to terminate their relationship. Mr Ragnetti resigned from the board and as (CEO) of (ALI) and Air One (ADH) as well as Managing Director of (ALI),” it said. Ragnetti was named (CEO) last March.
(ALI) Chairman, Roberto Colaninno has been named interim (CEO) until a replacement is found.
(ALI) said it had been affected by the economic downturn affecting much of Europe, with the recession proving both longer and deeper than expected in Italy.
Full-year revenue was up +3.3% at €3.59 billion. Passenger numbers were marginally down at 24.3 million; load factor rose +1.8%, to 74.6% LF.
(ALI) added that €91 million of 2012’s deficit was associated with extraordinary costs attributed to depreciation, maintenance and sales of airplanes within the overall plan to renew the fleet, which was completed in December 2012.
During the four-year program, 55 new airplanes joined the fleet, which was reduced from 166 to 140 airplanes. The average fleet age is 6.5 years, down from 9.3 years before the renewal program got underway.
March 2013: Air One (ADH), Alitalia (ALI)’s lower cost carrier (LCC) subsidiary, grew its offering from Venice (VCE), as it resumed services on three domestic routes, all of which were last served by (ADH) at least a year ago. Competition on two of the routes – to Bari (BRI) and Lamezia-Terme (SUF) comes from Volotea (VLZ), while easyJet (EZY) provides thrice-daily flights in the market from Venice to Naples (NAP).
April 2013: Air One (ADH) inaugurated seasonal services on the 2,600 km route from Catania (CTA) to Moscow Sheremetyevo (SVO) on 26 April. Twice-weekly flights are operated from the Sicilian city to the Russian capital until 17 October. A320s are deployed to serve the route. This is the first of three new routes to Russia (ADH) is starting from Catania, with St Petersburg and Rostov services starting soon.
May 2013: Air One (ADH), the low-cost carrier (LCC) subsidiary of Alitalia (ALI), inaugurated seasonal services on its only route to Denmark, as it commenced operating the 1,100 km route from Venice (VCE) to Copenhagen (CPH). Beginning on May 18th, (ADH) offers thrice-weekly A320-operated services, which it offers in competition with (SAS)’ four-weekly and Norwegian (NWG)’s weekly schedules. The route will disappear from Air One (ADH)’s flying schedule after 8 September.
July 2013: Alitalia (ALI) has revealed its turnaround plan, which will see increased emphasis on international services. The ‘Industrial Plan 2013-16’ by new (CEO), Gabriele Del Torchio will focus on three businesses: Alitalia (ALI); Air One (ADH); and Alitalia (ALI) Loyalty, which is developing and enhancing (ALI)’s "MilleMiglia" frequent flyer program.
December 2013: Alitalia ((IATA) Code: AZ, based at Rome Fiumicino) (ALI) and its low-cost carrier (LCC) subsidiary Air One ((IATA) Code: AP, based at Rome Fiumicino) (ADH) are set to collectively fill the void left by Belle Air (BEL) on Italy - Albania flights. Alitalia (ALI)'s inaugural 3x-weekly Bari to Tirana service will launch from January 5, 2014 with A319-100 equipment, while Air One (ADH) will launch its own 4x to 7x weekly services to Tirana from Bologna, Venice Marco Polo, and Verona from December 9 using A320-200s.
April 2014: Air One (ADH) has added its ninth international route from Catania (CTA), on the Italian island of Sicily, launching twice-weekly (Mondays and Fridays) to France’s second city of Lyon (LYS) on April 18th. Operated by Air One (ADH)’s 180Y-seat A320s, the 1,234 km sector will face no direct competition.
June 2014: Air One (ADH) has commenced three new services. On June 13th, it began twice-weekly flights (Tuesdays and Fridays) from Palermo (PMO) to Munich (MUC) with 180Y-seat A320s. Lufthansa (DLH) also offers the city pair four times weekly. Starting on June 14th, and planned to operate until September 28th, (ADH) began thrice-weekly services from Venice Marco Polo (VCE) to Moscow Sheremetyevo (SVO), again flown by (ADH)’s A320s. Aeroflot (ARO) also flies the 2,100 km route double-daily. Finally, launched on June 15th, (ADH) linked Catania (CTA) with Krasnodar (KRR) in Russia, offering flights every 10 or 11 days (alternating each week). The 2,190 km sector, again flown by A320s, will face no direct competition and will operate until October 9th.
August 2014: Alitalia (ALI) will ground its low cost carrier (LCC) short-haul subsidiary, Air One (ADH) this winter, with non-seasonal routes being taken over by the mainline unit (ALI). (ALI) stopped short of saying (ADH) is being closed, but added "Some routes will go to Alitalia (ALI). The others are seasonal flights and would be closed for winter anyway. We don't know yet what will happen in the summer (2015) season." (ALI) strongly rejects local media reports that Etihad (EHD) demanded Air One's (ADH)'s closure as a condition of its recent $1.76 billion/$2.32 billion investment in the Italian flag carrier.
September 2014: Ceased operations.
Click below for photos:
ADH-A330 - 2012-08
1 737-229 (JT8D-15A HK) (593-21839, /79 I-JETA), EX-(SBL)/(ITJ), LST (SNL), 120Y.
2 737-230 (JT8D-15 HK) (1075-23153, /85 I-JETC; 1089-23158, /85 I-JETD), EX-(DLH). 116Y.
0 737-3K2 (CFM56-3) (1856-24328, /90; 1857-24329), (TAV) WET-LSD. 24328 RTND 2002-04. RTND.
2 737-3M8 (CFM56-3B2) (1884-24413, /9 F-GKTA; 1895-24414, /90 F-GTKB), EX-(TEA), ALTER BAIL AVIA LSD, 136Y.
2 737-3YO (CFM56-3C1) (2205-25179, /92 EI-CLZ; 2248-25187, /92 EI-CLW), EX-(TES), (GEF) LSD, 136Y.
0 737-300 (CFM56-3), (FIH) WET-LSD 2004-05. RTND. 136Y.
0 737-33A (CFM56-3), (HLB) WET LSD 2004-05. RTND. 136Y.
2 737-31S (CFM56-3C1) (2923-29055, /97 EI-DNX; 2928-29056, /97 EI-DOH), DEUTSCH STRUCTURED FINANCE LSD 2006-04. 136Y.
0 737-36E (CFM56-3C1) (2769-26322, /96 EI-CRZ; 2792-26626, /96 EI-CSU), (ILF) LSD 4/99, EX-(VIV), 26322; TO BE RTND TO (ILF) IN 2008-02, & LST (CAY). 136Y.
0 737-4K5 (CFM56-3) (2677-27831, /94 D-AHLU), (BPA) WET-LSD 2001-12. RTND.
1 737-4Q8 (CFM56-3C1) (2461-25740, /93 EI-CZG 10/02; 2620-26302, /94 EI-CXM 2002-05), EX-(VOZ), (ILF) LSD. 26302; RTND & LST (TOR). 153Y.
1 737-4Q8 (CFM56-3C1) (2447-25164, /93 EI-CXJ), EX-(BAB), (ILF) LSD 2002-05. 153Y.
1 737-4S3 (CFM56-3C1) (1700-24163, /89 EI-DFD; 1702-24164, /89 EI-DFE; 1736-24167, /89 EI-DFF), EX-(BAB), (OXA) LSD. 24164; 24167; RTND; LST (CML) 2008-08. 156Y.
2 737-4YO (CFM56-3C1) (2064-24912, /91 EI-CWX; 2009-24906, /91 EI-CWW), EX-(ARE), (GEF) LSD 2001-12. 153Y.
2 737-42C (CFM56-3C1) (2060-24232, /91 EI-CWE; 2270-24814, /92 EI-CWF), (PSS) LSD 2001-04. 153Y.
5 737-430 (CFM56-3C1) (2311-27000, /92 EI-DGD; 2316-27001, /92 EI-COH, (BBB) LSD (2323-27002, /92 EI-COI; 2328-27003, /92 EI-COK; 2359-27005, /92 EI-COJ), EX-(DLH), 1 RTND TO LESSOR 1999-06, (2367-27007, /92 D-AGMR), 153Y.
1 737-436 (CFM56-3C1) (2144-25304; 2244-25843, G-DOCM, NTU; 2387-25851, /92 G-DOCR), EX-(BAB). 25304; RTND 2005-10. 25851; LSD 2005-10. 156Y.
1 737-46J (CFM56-3C1) (2465-27171), (PEB) LSD 2004-07. 153Y.
1 737-46N (CFM56-3C1) (2886-28723, /97 EI-CXL), (GEF) LSD. 153Y.
1 737-46Q (CFM56-3) (2447-25164, /93 EI-CXL), (BOU) LSD 2002-05. 153Y.
1 737-48E (CFM56-3C1) (2857-27632, /97 HL7512), ILF LSD 2006-06. 156Y.
1 737-49R (CFM56-3C1) (2833-28881, /96 PK-GWZ), (GEF) LSD 2006-06. 156Y.
0 737-8K2 (CFM56-7B27) (28379; 28380), (TAV) WET-LSD 4 MTHS 2002-01.
0 737-8K2 (CFM56-7B27) (555-30390), (TAV) WET-LSD TIL 2003-09.
0 737-86N (CFM56-7B26) (813-28642, TC-APF; 828-28643, TC-APK), (PGS) WET-LSD 2002-02. RTND. 189Y.
0 737-86N (CFM56-7B26) (573-28628, TC-APN), (PGS) WET-LSD 2004-04. RTND. 189Y.
0 737-883 (CFM56-7B) (625-28323, EI-CXU; 634-30467, EI-CXP); 668-30468, EI-CXT), (SAS) LSD 2002-05. RTND 2004-02.
0 757-236 (RB211-535E4) (617-26245, /94 TF-FIS), (ICE) WET-LSD 2004-05. RTND. 16C, 173Y.
1 +73 ORDERS A320-214 (CFM56-5B6/P) (F-WWBE, 2006-08 - SEE PHOTO), 2 CLASS, 159 PAX.
2 A320-214 (CFM56-5B4/2P) (1439, /01 CS-TQA; 1450, /01 CS-TQB), EX-(SAB), (SIL) LSD 2002-03. (LXA) WET-LST 2004-06. 154Y.
1 A320-214 (CFM56-5B4/2P) (2869, EI-DSA, 2006-09), 154Y.
1 A320-214 (CFM56-5B4/2P) (2995, EI-DSC), 2007-01. 154Y.
2 A320-214 (CFM56-5B4/2P) (3138, I-WEBA; 3161, I-WEBB), OPS FOR (ALI) & (ADH) IN (ALI) COLORS. 154Y.
17 A320-216 (CFM56-5B4/2P) (3076, EI-DSD, 2007-03; 3079, EI-DSE, 2007-03; 3178, EI-DSH, 2007-07; 3213, EI-DSI, 2007-09; 3295, EI-DSJ, 2007-11; 3328, EI-DSK, 2007-12; 3343, EI-DSL, 2007-12; 3362, EI-DSM, 2008-01; 3412, EI-DSN, 2008-02; 3463, EI-DSO, 2008-04; 3482, EI-DSP, 2008-04; 3502, EI-DSR, 2008-06; 3515, EI-DSS, 2008-06; 3532, EI-DST, 2008-06; 3666, EI-DSY, 2008-12; 3695, EI-DSZ, 2008-12; 3732, EI-DTA, 2008-12). ALL TRANSFERRED TO (ALI). 154Y.
1 +1 ORDER A330-202 (CF6-80E1) (272, A6-EYV, 2008-02; 339, A6-EYW), (ILF) LSD.
12/8 ORDERS A330-200 (CF6-80E1). 253 PAX, 2 CLASS:
12/12 ORDERS A350 XWB-800. 287 PAX, 2 CLASS:
1 CESSNA 550 CITATION II (JT15D-4) (0351, /82 I-ALKA), 9Y.
1 DASSAULT FALCON 20F-3 (TFE731-5BR-2C) (380, /78 I-ULJA), 12Y.
0 SAAB 2000, (CSR) WET-LSD 1998-12. RTND.
1 ATR42-300, ITALY FIRST WET-LSD 2003-07.
10 BOMBARDIER CRJ-900 (CL-600-2D24) (15075, EI-DRK, 2006-06; 15076, EI-DRI, 2006-06; 15077, EI-DRJ, 2006-06), (DLH) LSD, AIR ONE "CITYLINER" OPS. 90Y.
0 B AE 146 (AVRO RJ-70) (E1224, 2007-01), TRANSWEDE LSD 2006-11. RTND.
GABRIELE DEL TORCHIO, CHIEF EXECUTIVE OFFICER (CEO), PARENT COMPANY, ALITALIA (ALI).
ROBERTO COLANINNO, CHAIRMAN & INTERIM CHIEF EXECUTIVE OFFICER (CEO) AIR ONE (ADH) (2013-02).
LINO BERGONZI, DIRECTOR GENERAL.
NICOLA RUCCIA, EXECUTIVE VP & CHIEF OPERATIONS OFFICER (COO) (FCOTOAP) & VP MAINTENANCE (FCOMZAP) (firstname.lastname@example.org) (1998-07).
PIERLUIGI MACCHIA, CHIEF FINANCIAL OFFICER (CFO).
RICCARDO TOTO, DEPUTY (COO) & PURCHASING DIRECTOR.
ARNOLDO BOECKLIN, VP ENGINEERING & MAINTENANCE (FCOMZAP) (email@example.com).
PIETRO PASCALE, DIRECTOR TECHNICAL.
CAPTAIN ANTONIO FERRARO, DIRECTOR FLIGHT OPERATIONS (FCOMZAP)
CAPTAIN UBALDO TUFI, CHIEF PILOT.
GIORGIO AMOROSO, FLIGHT SAFETY DIRECTOR.
ALBERTO NOCCHI, DIRECTOR MAINTENANCE.
GIORGIO DE RONI, CHIEF REVENUE OFFICER, RESIGNED TO BECOME (CEO) OF (GOZ) (2011-06).
VICENZO DORCICH, DIRECTOR GROUND OPERATIONS.
GIANCARLO ZENI, DIRECTOR STRATEGY & BUSINESS DEVELOPMENT.
EDOARDO ZAVI, ENGINEERING MANAGER.
VITTORIO LEO, QUALITY MANAGER.
GIORGIO POMPATI, PLANNING MANAGER.
FRANCO TRAVERSA, MAINTENANCE MANAGER (1998-01).
MASSIMO MONACO, FLIGHT OPERATIONS ENGINEERING MANAGER.
VALERIO SANTARELLI, MAINTENANCE SUPERVISOR.