Alitalia close to going out of business

Alitalia is close on closing down,

After years of government subsidies etc, Alitallia has anounced that it can no longer gaurantee flights after today, 14 sept 2008.

XL travel in the UK has stopped trading this weekend leaving passengers stranded all over europe.

So, who is to blame for these failures?

The fuel Producers due to their lust for profit or the Governments for their lust for more fuel tax?

Your comments please!

SP

Where does fuel tax come into it?

IMHO fuel for commercial aviation is not subject to tax - fuel for private aviators is...

I think we might be missing a few options here such as:

1. Democratic society for permitting naural competition? It drives down prices but there will then always be failures.

2. Incompetent airline management for running uneconomic business models that encourage flying, for the sake of flying.

Flying has got too cheap anyway. They really SHOULD have tax on aircraft fuel but the problem has always been the near impossibility of collecting the tax on an international basis.

Alitalia is of course not the first flag carrier to have severe problems.
There has been a period of massive consolidation in the European aviation industry and it seems the missed the boat, so to speak.

It has been on the cards for airlines to go bust for some time. Expect more to do so.

I can't remember the rules regarding protection of customers money but I'd be wary of paying too much in advance for an Air Berlin ticket maybe.

Aircraft fuel is taxed - except for airlines. That means that General Aviation (GA) pays tax on their fuel.

HEM - you are being pedantic. We got your point about private aircraft being taxed on fuel in the first post.

I think I would be correct in stating that most people reading this thread think we are discussing the AIRLINES, and not the weekend boys in their Sopwith Camels and Private Jets.

Actually I would have said i was a combination of two things that are to blame for the present situation:

1. Berlusconi blocking the Air France/KLM bid to force an "Italian only" solution as the perfect conditions for a cynical asset stripping strategy (which is what they got)

2. a failure by the Italian unions to realise how few options they really had to avoid being presented as deal wreckers.

The Italian private equity consortium that Berlusconi preferred over a foreign airline put together, as far as I can understand, a deal so draconian that no-one in their right mind could accept it. The unions played into the trap by rejecting it and the consortium walked out of the talks. So Alitalia will collapse and the consortium can buy all the lucrative assets at rockbottom prices and Italy will be putting all the blame on the Unions.

Ultimately though it is that old crook, Berlusconi, and his absurd Munchhausian approach to politics that is entirely to blame.

Any commercial operations EXCEPT FOR AIRLINES pay tax on fuel.

GA is not identical with Biggles... This is a commonly-made error. For instance, the ADAC & similar rescue ops have to pay tax on their fuel. These are not "weekend boys".

what's a munchhausian approach to politics? do you mean deceitful?

no not decietful, just detatched from reality like Baron Münchhausen

What a shame. While pricey, Alitalia was probably the best airline I've ever used for travel.

better than emirates, lufthansa or thai? only thing I ever missed in Alitalia were goats and chickens sometimes.

Does this mean that the Pope's flight home might get cancelled? He usually flies Alitalia

Also another company called K&S has gone arse over tit leaving holiday makers in Turkey stranded

Good ridance. Bloody Alitalia... *grumbling and cussing under breath*

Good ridance indeed!! Probably the most useless airline I have ever flown with!!!

Just read the wishy washy liberal nGruadia from the weekend.
Boss of BA says there is more to come. Must have copied that off me.

Paddy Power is running a book on who's next.

SAS is looking to cut staff.
Niche business MAY save TAP and LOT from Portugal and Poland.

So, is it safe to book tickets on Alitalia for April???

First - I HATE the airline - worst flights I have ever had

BUT

Are cheapest at the moment and have non 6am flights available!! (and yes, I have looked at LH- dates we need (not flex) are 100 more)

So far, it hasn't been that bad for their customers.. Their still flying, but you never know whats going to happen tomorrow..
(Or the day after you buy your non-refundable ticket)

So let me get this straight: you're considering buying a ticket with an airline that's on the verge of bankruptcy?

If you book it make sure you use a credit card, that way you should be covered for the cost of the ticket at least.

I wouldn't personally.

if you were flying tomorrow or maybe next week, I'd say yes, go ahead but April...mmm risky.

On the other hand Alitalia is such a political bomb in Italy that no government would like to be seen letting it collapse so there is a good chance that they will find some way of keeping it going.

As was already pointed out Alitalia is closing NOT because of the oil price.

I heard yesterday that Lufthansa is strengthening the connections to italy: i would book air dolomiti (lufthansa) and let alitalia die in peace.