Alitalia - Società Aerea Italiana S.p.A., operating as Alitalia (Italian pronunciation: [aliˈtaːlja]), was an Italian airline which was once the flag carrier and largest airline of Italy. The company had its head office in Fiumicino, in the Metropolitan City of Rome Capital. The airline was owned by the Government of Italy as a nationalized business from its founding in 1946 until it was privatized in 2009. However, it struggled with profitability whilst operating as a private company, including failed negotiations to sell to other private parties. The airline entered extraordinary administration in 2017 following many years of financial losses. The Italian government eventually took back ownership of the airline in March 2020.
The airline operated a fleet of Airbus A319-100, Airbus A320-200, Airbus A321-100, Airbus A330-200, and Boeing 777-200ER aircraft to over 34 scheduled domestic, European and intercontinental destinations. The airline operated from its main hub at Leonardo da Vinci–Fiumicino Airport in Rome. The airline was a full member of the SkyTeam alliance, and it had codeshare agreements with 42 airlines. In 2018, the airline was the twelfth-largest airline in Europe.
On 24 August 2021, Alitalia announced that it would cease operations on 15 October 2021, and that passengers with tickets for later flights could reschedule on an earlier flight or request a refund.
On 15 October 2021, in a hybrid reorganization, Alitalia sold its entire operation to ITA Airways, a newly formed state-owned flag carrier.
Alitalia - Linee Aeree Italiane
Alitalia - Linee Aeree Italiane S.p.A. was established on 16 September 1946 as Aerolinee Italiane Internazionali (Italian International Airlines). It was formed as a result of an Anglo-Italian agreement and was funded by the Italian government and British European Airways (BEA) in a 60/40 share arrangement with a capital of 900 million lire (£1,000,000). Its popular name, Alitalia, is an Italian portmanteau of the words ali (wings) and Italia (Italy). It started operations on 5 May 1947, in which year it carried over 10,000 passengers. The inaugural flight was with a Fiat G.12 Alcione, piloted by Virginio Reinero from Turin to Catania and Rome.
The first intercontinental flight left a year later, flying between Milan and cities in South America. The Savoia-Marchetti SM.95 four engined airliner was used on European routes up to 1949. On 31 October 1957, Alitalia merged with Linee Aeree Italiane and took on the name of Alitalia – Linee Aeree Italiane. By the time of its liquidation, Alitalia was owned by the Italian Ministry of the Treasury (49%), other shareholders, including employees (49%) and Air France-KLM (2%, later: 25%). The airline's first charter flight was operated on November 1, 1958, from Turin to Nice.
By 1960, Alitalia was operating jet airliners on some European routes (the Sud Caravelle) and the Douglas DC-8 on several longer distance routes. The Vickers Viscount propeller-turbine four-engined airliner was flown by Alitalia on its European network throughout the 1960s.
Beginning with Pope Paul VI in 1964 until the airline's closure in 2021, the Pope flew most often on a chartered Alitalia jet when making pastoral and state visits to a country. The Pope's flight was often nicknamed "Shepherd One" by the press, while the actual callsign was "Volo Papale" (papal flight, in Italian) followed by a serial number.
In 1978, Alitalia had its head office in the Palazzo Alitalia in Rome.
By the 1990s, Alitalia was carrying 25 million passengers annually. In 1997, it set up a regional subsidiary Alitalia Express and in 2001 became a member of SkyTeam. In November 2003, Alitalia announced that it would cut 2,700 jobs over the next three years to prepare the airline for a merger with Air France and KLM. In April 2004, Alitalia acquired Gandalf Airlines, a bankrupt regional airline, to gain additional slots at several European airports, mainly in Milan (Linate) and Paris (Charles De Gaulle).
In 1995, Alitalia signed a partnership with KLM which aimed at a merger. The aim of the partnership was to develop Malpensa as a hub, along with Amsterdam (which lacked enough landing slots to expand further) and Rome Fiumicino.
In 2001, Alitalia renewed the ground handling contract with SEA. In the same year, Alitalia joined the SkyTeam alliance.
In September 2007, Alitalia announced that it would nearly halve its hub at Malpensa and instead focus on Rome-Fiumicino and move all intercontinental flights there. Until this announcement, Malpensa had been Alitalia's primary hub for intercontinental flights. The transition away from Malpensa and towards Rome-Fiumicino was completed by the end of March 2008. Minor intercontinental destinations, which previously received flights only from Malpensa, henceforth received only flights from Rome-Fiumicino or else were discontinued.
Alitalia - Compagnia Aerea Italiana
In 2008, a group of investors formed the "Compagnia Aerea Italiana" (CAI) consortium to buy the bankrupt Alitalia – Linee Aeree Italiane ("old" Alitalia) and to merge these with Air One, another bankrupt Italian carrier.
On 30 October 2008, CAI offered €1 billion to acquire parts of the bankrupt airline, amidst pilots' and flight crew members' opposition to labour agreements. On 19 November 2008, CAI's offer was accepted by the bankruptcy administrator of Alitalia with the permission of the Italian government, at the time the majority shareholder of the bankrupt airline. Alitalia's profitable assets were transferred to CAI on 12 December 2008 after CAI paid €1.05 billion, consisting of €427 million in cash and the assumption of responsibility for €625 million in Alitalia debt.
A USA diplomatic cable disclosed in 2011 summarised the operation as follows: "Under the guise of a rather quaint (and distinctly un-EU) desire to maintain the Italian-ness of the company, a group of wealthy Berlusconi cronies was enticed into taking over the healthy portions of Alitalia, leaving its debts to the Italian taxpayers. The rules of bankruptcy were changed in the middle of the game to meet the government's needs. Berlusconi pulled this one off, but his involvement probably cost the Italian taxpayers a lot of money."