Alitalia unveils turnaround strategy

Italian carrier Alitalia has unveiled a new plan to return to profits in three years’ time.

In the plan, the main Alitalia brand will focus on using Rome Fiumicino Airport as a hub operating international and domestic flights.

Selected Rome-Milan-Rome slots will be replaced with international point-to-point connections and as such increase flights from Milan Linate and Milan Malpensa.

There are no plans for new UK routes but will instead focus on Europe, Russia and north Africa.

To develop its international flights the airline will introduce six new aircraft, reconfigure its Airbus A330 and change its price strategy. New routes from Rome could include Nairobi, Seoul, Santiago de Chile, San Franciso and Johannesburg as well as Milan to Shanghai, Abu Dhabi and Osaka.

Its flight move around will improve connection times while helping to streamline its services as it aims to break even in 2014 and reach profits by 2016. The ‘re-hubbing’ at Rome will begin this October.

Its plan also includes the rebrand of its service classes; improvement onboard and new VIP lounges.

In a statement, the airline said the changes are in line with a new mission statement:
“The Industrial Plan provides that Alitalia refocuses on the values that have always distinguished the company in Italy and in the rest of the world: the being Italian, the high quality service and the pride of belonging. These elements define the new mission of the company: “Proud to show the best of our country. Passionately.”.

Meanwhile the Air One brand will go through a rebrand and focus on operating from four bases in Catania, Palermo, Venice and Pisa. It will become a ‘web-orientated company’ with an EASY and PLUS fare offering an economy and premium service.

Its Alitalia Loyalty programme is to become a separate business with the aim to increase membership and develop more partners where members can earn and redeem points.