Alitalia - latest developments

I think we all want to see this end but there is a strange voyeuristic element to watching the strange happenings going on at AZ. It is like a soap opera, i doubt anyone could have scripted it any better.

So Lufthansa has decided that it is cheaper to throw their hat in the ring independently and create a different subsidiary based in Milan. Since AZ has already written off the Milan hub in favour of a politically more expedient Rome only strategy - they are only shooting themselves in the foot. With AirOne essentially going bye bye, LH would have lost the feed from AirOne its current friend in Italy. Setting up a A319 based hub in Linate makes sense. Lets hope they dont have to use Malpensa.

If you were a smart AirOne employee where would you go? LH Italia or the CamelItalia aka new AZ?

BTW the funding from the politically created fund is late (isn't everything in Italy??? BTW that was a joke) but the Administrator has already agreed that the new consortium will be picking up the check from Dec 1). Final closing is now scheduled for December 12th.

Cheers

Alitalia - now you don't see it ,now you see it.

In a masterly stroke of financial genius - Intesa SanPaolo has come up with the answer to what to do with Alitalia.

So here is how it works.

Alitalia buys Air One but not its debt. Alitalia then issues new shares as a new company including shares to AirOne's owners.

Say WHAT?

This is what was reported by Reuters.

http://uk.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUKL140020420080731

I rest my case. The Italian government and Intesa Sanpaolo are certifiable.