Air One will focus on point-to-point routes from Italian regions – specifically Sicily, Tuscany and the northeast – while Alitalia will focus on the hubs at Rome Fiumicino and the two Milan Airports.
The group will add international routes and, on a number of European destinations, it will increase its level of competition with LCCs. New pricing strategies may possibly increase the number of low fares with Alitalia, but will not fundamentally address the problem that it has a higher cost base than these competitors.
On long-haul destinations, its possible new routes will face less competition, but expansion of its intercontinental network will still leave Alitalia’s operations looking sub-scale in this segment.
Moreover, the addition of six long-haul aircraft raises questions about how these assets will be funded.
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If, as seems likely, a growing number of domestic passengers shift from air to rail, it makes sense for Alitalia to develop partnerships with rail operators. The purpose of such relationships should be to maintain a relationship with these passengers and to facilitate their transfer onto the international air network. Collaboration between air and rail loyalty schemes should form part of these agreements.
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Alitalia Loyalty is a new subsidiary company of the Group, formed in late 2012, dedicated to the development of Alitalia’s MilleMiglia frequent flyer programme. Under the Group’s 2013-2016 Plan, Alitalia aims to enhance the programme in a number of ways.
These are by growing the scheme’s membership, developing new ways to redeem miles on flights and other services, creating partnerships with banks and credit card companies, collaborating with a “coalition of many loyalty programmes” in order to increase opportunities to earn and redeem Alitalia miles, and improving communication with MilleMiglia members.
http://atwonline.com/airline-financ...losses-deepen-280-million-ceo-steps-down-0226