Pressure mounts on Italy to save ailing Alitalia

Alitalia, which employs more than 11,000 people, has struggled to compete with low-cost European rivals and was placed in administration in 2017. (Reuters)
Updated 15 April 2019

Pressure mounts on Italy to save ailing Alitalia

  • Unions warned this weekend that the national carrier risked being ‘euthanized’
  • Alitalia, which employs more than 11,000 people, has struggled to compete with low-cost European rivals

ROME: Concern was mounting in Italy on Monday over the fate of the troubled national airline Alitalia, with just 15 days until the deadline for the state railway company to submit a concrete takeover offer.
Unions warned this weekend that the carrier risked being “euthanized,” spooking Italy’s populist coalition government, which can ill afford a fresh Alitalia disaster as it campaigns for May’s European elections.
Italy’s Ferrovie dello Stato (FS) submitted an offer to buy Alitalia at the end of October, but does not want to hold any more than 30 percent in the airline.
FS had been discussing a potential partnership with both Atlanta-based Delta and EasyJet, Britain’s biggest low-cost airline, but the latter said last month that it was pulling out of the negotiations.
In addition to FS’s 30 percent, Delta is interested in taking 15 percent, and the Italian Treasury another 15 percent, according to Italian media reports.
In that case, one or more partners would still need to be found for the remaining 40 percent. The binding offer must be submitted by April 30.
According to media reports, Delta is in contact with the Chinese company China Eastern, and has also approached Italian infrastructure group Atlantia.
However, any deal with Atlantia would be toxic for the government, which has repeatedly lambasted the company.
Atlantia’s majority-owned subsidiary Autostrade came under fire last summer after a large bridge in Genoa collapsed, killing more than 40 people.
Should the FS bid fail, German airline Lufthansa has expressed interest in Alitalia, but has ruled out any deal that involved the Italian state and would likely cut thousands of jobs.
Three unions for Alitalia pilot and cabin crews — ANPAC, ANPAV and ANP — warned in a statement Saturday that the situation risked deteriorating further with a June 30 deadline for the repayment of a €900 million ($1 billion) state loan.
The unions said they would not sit back and watch the “state euthanasia, and are ready to mobilize and open direct talks with possible industrial and financial partners who would guarantee a credible launch of the new Alitalia.”
The airline, which employs more than 11,000 people, has struggled to compete with low-cost European rivals and was placed in administration in 2017.


Big oil feels the heat on climate as industry leader promises: ‘We will be different’

Updated 22 January 2020

Big oil feels the heat on climate as industry leader promises: ‘We will be different’

  • Trump singles out ‘prophets of doom’ for attack
  • Greenpeace told the Davos gathering that the world’s largest banks, funds and insurance companies had invested $1.4 trillion in fossil fuel companies since the Paris climate deal

LONDON: Teenage environmental activist Greta Thunberg slammed inaction over climate change as the global oil industry found itself under intense scrutiny on the opening day of the World Economic Forum in Davos.

The teenage campaigner went head to head with US President Donald Trump, who dismissed climate “prophets of doom” in his speech.
She in turn shrugged off the US president’s pledge to join the economic forum’s initiative to plant 1 trillion trees to help capture carbon dioxide.
“Planting trees is good, of course, but it’s nowhere near enough,” Thunberg said. “It cannot replace mitigation. We need to start listening to the science and treat this crisis with the importance it deserves,” the 17-year-old said.
The 50th meeting of the World Economic Forum was dominated by the global threat posed by climate change and the carbon economy.
The environmental focus of Davos 2020 caps a year when carbon emissions from fossil fuels hit a record high, and the devastating effects of bushfires in Australia and other climate disasters dominated the news.
Oil company executives from the Gulf and elsewhere are in the spotlight at this year’s Davos meeting as they come under increased pressure to demonstrate how they are reducing their carbon footprint.
“We are not only fighting for our industry’s life but fighting for people to understand the things that we are doing,” said Vicki Hollub, CEO of Occidental, the US-based oil giant with extensive oil operations in the Gulf. “As an industry when we could be different — we will be different.”

‘Planting trees is good, but nowhere near enough,’ activist Greta Thunberg told Davos. (Shutterstock)

She said the company was getting close to being able to sequester significant volumes of CO2 in the US Permian Basin, the heartland of the American shale oil industry which is increasingly in competition with the conventional oil producers of the Arabian Gulf.
“The Permian Basin has the capacity to store 150 gigatons of CO2. That would be 28 years of emissions in the US. That’s the prize for us and that’s the opportunity. People say if you’re sequestering in an oil reservoir then you are producing more oil, but the reality is that it takes more CO2 to inject into a reservoir than the barrel of oil that it makes come out,” Hollub said.
The challenge Occidental and other oil companies face is to make investors understand what is happening in this area of carbon sequesteration, she added.
The investment community at Davos is also looking hard at the oil industry in the face of mounting investor concerns.
Greenpeace told the Davos gathering that the world’s largest banks, funds and insurance companies had invested $1.4 trillion in fossil fuel companies since the Paris climate deal. It accused some of these groups of failing to live up to the World Economic Forum goal of “improving the state of the world.”