Alitalia Douglas DC-9
Alitalia—a combination of the Italian words for “Air Italy” and the Italian flag carrier airline—was formed in September 1946 as Aerolinee Italiane Internazionali at the request of the Italian postwar government. Alitalia was meant from the start to be the Italian flag carrier, and the Italian government held a 48% controlling interest in the airline; British European Airways (BEA), who was to assist the establishment of Alitalia, held another 40%. It did not begin operations until 1947, with a mixed fleet of Fiat G.12s, Savoia-Marchetti SM.95s, and Avro Lancastrians—all converted World War II-era aircraft, with the latter converted from bombers. Despite the distance involved, the Lancastrians were used to immediately establish international routes to South America. More modern equipment arrived in 1949 in the form of dedicated airliners—Douglas DC-3s for domestic routes and DC-4s for international service.
Eleven years after its foundation, Alitalia absorbed its main rival, Italian Airlines (Linee Aeree Italiane), formally taking the name Alitalia-Linee Aeree Italiane. By this time, it had acquired turboprop Vickers Viscounts for European service, and in 1960 Alitalia entered the jet age by putting into service the Douglas DC-8 and Sud-Aviation Caravelle on the same day. In 1961, BEA relinquished its holdings in Alitalia, with the Italian government acquiring slightly more shares; other shares were acquired by Trans World Airlines (TWA) and Air France, with the remainder going to private investment.
It continued to expand its network and modernize its fleet, which by 1970 included wide-bodied airliners such as the 747. Alitalia also became one of the world’s largest users of the DC-9, as no less than 43 DC-9s were in service with the airline on domestic routes by the 1980s. It adopted its current livery in 1973 and became known in the 1980s as the “Pope’s airline,” as Alitalia usually flew Pope John Paul II on his frequent overseas trips.
By 1987, Alitalia was also known for its financial problems: continued problems with labor unions and Italy’s volatile politics left the airline constantly in debt (it would only turn a profit for one year of the 20th Century, 1998), and the Italian government was forced to increase its share to 83% to keep Alitalia from going bankrupt. A major restructuring occurred that at least lowered the debt for some time. The post 9/11 airline downturn made Alitalia’s ongoing troubles worse, and by 2006, Italy’s government, itself facing financial crisis, could no longer afford to keep loaning billions of euros to Alitalia. Attempts to privatize the airline failed, as did an attempted merger with KLM. Making matters worse, Alitalia was embroiled in several lawsuits from other airlines after a failed attempt to take over Air Europe and its move to the larger Milan-Malpensa airport, which the other airlines felt gave Alitalia too much of an advantage in the southern European market. (It was a moot point: by 2007, Alitalia instead moved most of its operations to Rome.)
In 2008, the Italian government announced that Alitalia was bankrupt and put its shares up for sale. The airline—which never ceased operations—was acquired by Compagnia Aerea Italiana (CAI), which already owned Alitalia’s biggest competitor, the low-cost airline Air One. Under the terms of the agreement, CAI acquired 75% of Alitalia, leaving the other 25% in the hands of Air France-KLM. Air One continued to exist, now taking over some of Alitalia’s domestic routes and acting as a low-cost subsidiary. Alitalia consolidated its fleet and routes, but while it has done better under CAI ownership, it continues to face financial difficulty. Nonetheless, this troubled airline remains the Italian flag carrier and the 19th largest airline in the world.
Alitalia Douglas DC-9
Alitalia—a combination of the Italian words for “Air Italy” and the Italian flag carrier airline—was formed in September 1946 as Aerolinee Italiane Internazionali at the request of the Italian postwar government. Alitalia was meant from the start to be the Italian flag carrier, and the Italian government held a 48% controlling interest in the airline; British European Airways (BEA), who was to assist the establishment of Alitalia, held another 40%. It did not begin operations until 1947, with a mixed fleet of Fiat G.12s, Savoia-Marchetti SM.95s, and Avro Lancastrians—all converted World War II-era aircraft, with the latter converted from bombers. Despite the distance involved, the Lancastrians were used to immediately establish international routes to South America. More modern equipment arrived in 1949 in the form of dedicated airliners—Douglas DC-3s for domestic routes and DC-4s for international service.
Eleven years after its foundation, Alitalia absorbed its main rival, Italian Airlines (Linee Aeree Italiane), formally taking the name Alitalia-Linee Aeree Italiane. By this time, it had acquired turboprop Vickers Viscounts for European service, and in 1960 Alitalia entered the jet age by putting into service the Douglas DC-8 and Sud-Aviation Caravelle on the same day. In 1961, BEA relinquished its holdings in Alitalia, with the Italian government acquiring slightly more shares; other shares were acquired by Trans World Airlines (TWA) and Air France, with the remainder going to private investment.
It continued to expand its network and modernize its fleet, which by 1970 included wide-bodied airliners such as the 747. Alitalia also became one of the world’s largest users of the DC-9, as no less than 43 DC-9s were in service with the airline on domestic routes by the 1980s. It adopted its current livery in 1973 and became known in the 1980s as the “Pope’s airline,” as Alitalia usually flew Pope John Paul II on his frequent overseas trips.
By 1987, Alitalia was also known for its financial problems: continued problems with labor unions and Italy’s volatile politics left the airline constantly in debt (it would only turn a profit for one year of the 20th Century, 1998), and the Italian government was forced to increase its share to 83% to keep Alitalia from going bankrupt. A major restructuring occurred that at least lowered the debt for some time. The post 9/11 airline downturn made Alitalia’s ongoing troubles worse, and by 2006, Italy’s government, itself facing financial crisis, could no longer afford to keep loaning billions of euros to Alitalia. Attempts to privatize the airline failed, as did an attempted merger with KLM. Making matters worse, Alitalia was embroiled in several lawsuits from other airlines after a failed attempt to take over Air Europe and its move to the larger Milan-Malpensa airport, which the other airlines felt gave Alitalia too much of an advantage in the southern European market. (It was a moot point: by 2007, Alitalia instead moved most of its operations to Rome.)
In 2008, the Italian government announced that Alitalia was bankrupt and put its shares up for sale. The airline—which never ceased operations—was acquired by Compagnia Aerea Italiana (CAI), which already owned Alitalia’s biggest competitor, the low-cost airline Air One. Under the terms of the agreement, CAI acquired 75% of Alitalia, leaving the other 25% in the hands of Air France-KLM. Air One continued to exist, now taking over some of Alitalia’s domestic routes and acting as a low-cost subsidiary. Alitalia consolidated its fleet and routes, but while it has done better under CAI ownership, it continues to face financial difficulty. Nonetheless, this troubled airline remains the Italian flag carrier and the 19th largest airline in the world.