Air France-KLM writes off Alitalia stake

Air France-KLM writes off Alitalia stake


“Air France-KLM (AIRF.PA) wrote off the value of its stake in Italy’s Alitalia on Thursday, casting doubt over its willingness to invest further in the struggling carrier as a weak economy chips away at its own debt reduction plans … French newspaper La Tribune reported that the chances of Air France-KLM participating in Alitalia’s capital increase were practically zero”

Well, the viability of commercial aviation as we know it, is sensitive to a number of issues, such as possible hyperinflation of the dollar, possible breakup of the european community, possible exit of italy from the euro, possible collapse of the markets in relation to the plateau oil+gas, which nobody really knows how long may go after 2016, before the world markets would take a dive.

Now some courageous (but probably unpopular) choice could have been for suppliers / manufacturers spending the last five years into bringing to production more modern generations of cost effective and energy efficient LTA cargo, but we know that as per the nuclear failed sector, and the automobile failed sector, it is very difficult to steer out of the orthodoxy.

What remains is either a possibility of a merger in Russia, which would definitively improve “their” (Aeroflot) image on safety records preserving the orthodoxy, or a skinning to the bones to a low-cost airline, giving up the orthodoxy. As an Italian company, given the retrograde brain motion affecting the country, which the six feet dog faced backward reflects almost with irony, just the idea of being ahead instead than behind technology, is probably a vane hope, and maybe a risk nobody in the ‘caste’ would want to take.


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