Reviving Alitalia: Italy's Loss Making Airline
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Case Code: BSTR126 Case Length: 25 Pages Period: 1995-2004 Pub Date: 2004 Teaching Note: Not Available |
Price: Rs.500 Organization: Alitalia Industry: Airline Countries: Europe, Italy Themes: - |
Abstract Case Intro 1 Case Intro 2 Excerpts
Background Note
Aerolinee Italiane Internazionali (Alitalia) was established on September 16, 1946 in Italy, with an initial capital of 900 mn liras. The company commenced operations in May 1947 with four G-12 aircraft made by Fiat and rented from the Italian Air Force. The British government also provided financial support to Alitalia by acquiring a 30% equity stake in the company through its national carrier - British European Airways (later renamed British Airways). On May 05, 1947, Alitalia's first G-12 flight took off from Turin, stopped en-route in Rome and went on to its destination, Catania. This marked the beginning of the passenger airline industry in Italy. In July 1947, Alitalia flew its first international flight from Rome to Oslo, Norway. In its first year, Alitalia carried 10,000 passengers. Over the next couple of years, the airline extended its network to several other European destinations, including a link between Milan and Buenos Aires, Argentina. This was Alitalia's longest service route at that time and the journey took 30 hours...
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