Air Italy would have been a good airline. But why didn’t lasted long?

Air Italy Airbus A330-200 | Photo From: GabryPlanes via wikimedia

Air Italy, the former Italian airline, would have been an excellent airline to support the fragile Italian Aviation Industry. However, there are mistakes in the airline that led the airline to be placed in liquidation on February 11, 2020. The airline whom The Points Guy refers to it as “the Airline That Wants to Make Milan Great Again”, had a crazy expansion plan supported by their minority shareholder, Qatar Airways. As Air Italy was the second-largest airline of Italy by passenger flown, they planned to take over the title of the Flag Carrier of Italy after the current titleholder Alitalia, which filed for Administration back in 2017.

Air Italy has much history in its operations. The airline has been in operations since March 1963 under the name of Alisardia, later in May 1991, changing the airline name to Meridiana. The airline was predominantly a leisure carrier for the people of Sardinia, a small island that is part of Italy. Later the airline was iconic for leisure service within Italy. Qatar Airways acquired a 49% stake in the airline, which then created a new Parent Company, AQA Holdings. This would be a “Joint-Ventures” between Qatar Airways with 49% Stake and 51% stake with Aga Khan Fund for Economic Development (AKFED) through the former airline, Alisardia (surprisingly Alisardia came back to life and was still a company in Italy). Some aviation geeks, including myself, have noticed the similarities to the plan, similar to the Alitalia and Etihad Airways failed partnership.

Alitalia A330-200 | Photo From: Anna Zvereva via wikimedia

Alitalia the issues that continued

When Alitalia restarted operations back in 2015, their plan was 49% stake of the airline would be owned by Etihad Airways and 51% stake retained by a company called "Compagnia Aerea Italiana". CAI is a consortium company that leads the effort to create the new Alitalia after they acquire the bankrupt Alitalia – Linee Aeree Italiane (the "old" Alitalia) and Air One, another bankrupt Italian carrier.

Back in May 2017, weeks after Alitalia announced its UAE partner Etihad Airways would pull out of all financial support in the airline, which leads Alitalia to go into Administration after the airline's employees voted no to a plan to restructure the airline once again. This time with numbers of layoffs, a slight reduction of the aircraft's ownership, and several other issues that lead the airline to be in the hot seat in 2017.

The old Alitalia logo on the left (2005 - 2015) and the recent Alitalia logo (2015 - 2018) | Photo From: Brand New (an underconsideration.com website)

The New Alitalia Uniforms designed by Alberta Ferretti | Photo From: Runway Girl Network

The original "new" Alitalia plan was focused on the Alitalia image. Etihad helped Alitalia redesign their logo keeping the airline's iconic letter A design resemblance of an aircraft tail fin, modernizing cabins with seatback entertainment on long haul flights, expanded services like new meals designed to represent Italy, and new uniforms from the same Italian independent fashion designer that designed the new Etihad Uniform, and no it was not Versace, I wished. However, with the airline's income not being stable after four years since the established partnership and numbers of employees strikes, that led to the issue with Alitalia's leadership deciding to go into Administration. Since the administration announcement, Alitalia reverted its logo from the original design logo with racecar gradient style design to a more basic logo with no effects. Then the airline again went to change their uniforms, looking uglier than it was.

Alitalia Logo (2018 - Present)

Later due to current events with the Coronavirus Pandemic, the Government of Italy have announced that Alitalia will return to operate under state ownership due to the current outbreak but also in due part of after numbers of failed attempts to keep the airline privatized after failed negotiations. Airlines Like Delta and China Eastern Airlines, Lufthansa, EasyJet, and Ryanair all filed for formal expressions of interest to acquire the airline. Also, including the Italian national rail company, Ferrovie Dello Stato Italiane, have submitted formal expressions of interest to acquire the airline. This never happened after negations did not go well, which lead some of the airlines backing out of negotiations with the bankrupt carrier.

Qatar Airways Airbus A350 - 900 XWB | Photo From: Markus Eigenheer via wikimedia

The tale of two Air Italy

In September 2017, we saw the announcement that Qatar Airways would be acquiring shares in Meridiana, similar to Etihad Airways and Alitalia. Five months later (in February 2018), Meridiana hosted a press conference in Milan, Italy, with the members of Alisardia, AKFED, and Qatar Airways announcing the plans to rebrand the airline Meridiana to Air Italy. Now wait, here is a funny thing about Meridiana and Air Italy. Air Italy is technically a charter airline that was established in 2005, later being acquired by Meridiana in 2013. Now insisted of Air Italy merged with Meridiana, the airline would have no longer existed. Still, for some reason, Meridiana acquired Air Italy but have the airline operate on behalf of Meridiana and its Brand.

The Original Air Italy (2005 - 2018) Boeing 767 - 200ER | Photo Credit: Aldo Bidini via Wikimedia

The original Air Italy operated at the time was 1 Boeing 737 – 700, 7 Boeing 737 – 800, 1 Boeing 767 - 200ER, and 3 Boeing 767 – 300ER. Meridiana, before the Air Italy acquisitions, operated Airbus A319’s, Airbus A320’s, Airbus A330’s, and the iconic McDonnell Douglas MD-82 (the only Italian airline to still operate the MD-82's). All Airbus Aircrafts where phased outs, as Meridiana wanted to keep a simple operation to operate an all Boeing airline with McDonnell Douglas aircraft as well. Since the acquisition of all of the old Air Italy fleet, the aircraft was rebranded with the Meridiana Livery, and cabin changed to all gray seats.

Even the old Air Italy had its own Air Operators certificate and its own IATA and ICAO registration codes. At the time before Meridian became the new Air Italy, Meridiana had only 11 aircrafts formally registered to the old Air Italy but now transfer to the new Air Italy. Before Meridiana ceased operations, all of the McDonnell Douglas aircraft would be phased out and not be launched with the new Air Italy.

Ladies and Gentlemen, the new Air Italy is now boarding

Alisarda Chairman Marco Rigotti (4th person), Air Italy Chairman Francesco Violante (Last person on the right), Qatar Airways CEO Akbar al Baker (Center), and Boeing Executives at the Handover Ceremony for the first Air Italy Boeing 737 MAX 8 | Photo Credit: The Points Guy

Air Italy Boeing 737 MAX 8 | Photo Credit: Airways Magazine

So, when announcing the plans to make Meridiana as Air Italy, the plan became crazy, people referring to a rapid expansion plan. The most significant factor of the Air Italy plan is about the fleet, which in five years the airline would have an all-Boeing Fleet. 20 Boeing 737 MAX 8 (yes, the MAX 8, which as of Late 2018/Early 2019 are grounded due to the recent Lion Air and Ethiopia Airlines crash) and 30 Boeing 787 – 8 Dreamliner's. Also, temporarily operate 5 Airbus A330-200 from Qatar Airways. Air Italy technically would be sub-leasing all aircraft from Qatar Airways. Most of the new Aircraft was technically ordered for Qatar Airways but now operated to Air Italy.

Meridiana Boeing 737-800 | Photo Credit: Anna Zvereva via wikimedia

Other plans included a new brand image, phasing out the Meridiana Red and Black color scheme, and going towards the Qatar Airways maroon color with a mix of light teal-blue color. Now Alitalia has an iconic, unique A design replicating an Aircraft tail fin; Air Italy uses a unique Y design similar to a bird. The Air Italy cabin experience would take a step further, Seatback entertainment by Panasonic (equipment's formally owned by Qatar Airways), Inflight Wi-Fi (a first for Air Italy), and a whole new level of amenities and meal service. Their where talks about the new airport lounge for Air Italy, which would be a first for the airline as the airline never had their own lounge in the history of Air Italy.

Air Italy also made new destinations decision, making Milano - Malpensa Airport (MXP) as their hub moving from the historic operations out of Olbia Costa Smeralda Airport (OLB). The airline would utilize the Hub and Spoke model, having all of the airlines operated flight to and from Milan, this would also have most flight connections in and out of Milan. Here is an example, flying from New York John F. Kennedy Airport (JFK) to Rome's Leonardo da Vinci–Fiumicino Airport (FCO). There would be an 8 hour and 10-minute flight from JFK to Milan with the airline's Airbus A330 – 200 aircraft and in the future with the Boeing 787, then have a 2-hour layover at MXP airport, later hop on the airlines Boeing 737 aircraft for 1 hour and a 15-minute flight from MXP to FCO. That is the model the airline wanted to take similar to what Qatar Airways and like every other Middle East Air Carrier dose for their operations. The airline did mention talks about modifying the loyalty rewards program and commencing new partnerships (e.g., Code Share Agreements, etc.). The airline continued its codeshare agreement's when it was Meridiana with British Airways, Iberia, S7 Airlines, Air Malta, and Air Moldova. Since the airlines reestablished as Air Italy, the airline launched four codeshare agreements' Qatar Airways, LATAM Airlines, Bulgarian Air, and Oman Air.

Air Italy a possible candidate for oneworld alliance

Now questions are also mounting about a possible alliance partnership with Air Italy. A journalist in the audience at the press conference asked the question relating to would Air Italy join oneworld alliance. The CEO of Qatar Airways, Akbar Al Baker, said at the press conference…

Qatar Airways CEO Akbar Al Baker | Photo Credit: Aviation Pros

“We are very keen for any airline that we invest is part of oneworld. As you know that we are a major investor in IAG which is part of oneworld, we are a major investor in LATAM which is part of oneworld, we are an investor in Cathay Pacific which is oneworld. So, it’s obvious we would like Air Italy to be part of oneworld. But to get to the membership of oneworld you have several milestones that you need to achieve, and we will make sure with Qatar Airways’ involvement with Air Italy that we will comply with these requirements sooner than any other airline would have been able to achieve. And at the end of the day, it’s not only what we want but it is also what the oneworld members would want but I am sure that there will be a very big excitement because this is a country which is not properly covered by oneworld members so it is obvious that we will be an exciting candidate for them to be part of oneworld.”

- Akbar Al Baker, CEO of Qatar Airways

Now thankfully One Mile at a Time covered this topic and was able to quote the CEO statement from the airline's press conference video, as the airline has recently deleted their YouTube Page which had the press conference video and again thankfully the statement the CEO of Qatar Airways as mentioned was available on One Mile at a Time website.

Qatar Airways Boeing 777 - 300ER in oneworld Livery | Photo Credit: Arpingstone via Wikimedia

Back to what we were talking about, the points that were brought were Qatar Airways really wanted Air Italy to join the alliance, which in my opinion they should. The airline and the alliance would benefit from this opportunity as it would help the alliance as oneworld has never had an Italian Airline in its service. It even showed proof the airline was wanting to join oneworld. The airline had four airlines (British Airways, Iberia, S7 Airlines, and Qatar Airways) as codeshare partners. I would have mentioned LATAM, but at this time, when this blog post was posted, LATAM left the alliance as of May 1st, 2020. But even if the airline could not meet the requirements as a full-time oneworld member, why not oneworld connect.

Oneworld created a unique program called oneworld connect. According to oneworld website it states, "a new way for airlines to link up to the world's premier airline alliance". Already having one airline part of the program, Fiji Airways. It is surprising, in my opinion, this would have been an opportunity for Air Italy, but it had not.

Air Italy: a revolving door for flights

Since the airline establishment, there has been a revolving door on destinations. With destinations, Air Italy made quick and vivid changes to its flight operations. Just a month into service Air Italy suspended their India and Thailand flights, showing the airline made mistakes on flying less populated routes that the expense was higher than profits being made. Then there was another destination walked into Air Italy and walked out the same door, which was their plans to fly to Chicago. Air Italy planned its North American expansion to have Air Italy fly to Chicago, Las Angeles, San Francisco, and Toronto to/from their Milan hub. However, due to fleet issues, Air Italy announced the suspension on its flight to Chicago just weeks after announcing the new destination.

But also don't forget Air Italy even modified its North American Expansion from roundtrip to seasonal service. This means that Las Angeles, San Francisco, and Toronto to/from their Milan hub will now only be operated during the spring/summer season. In my opinion, it was thoughtless to make the service from Round Trip to Seasonal. Italy to California and Canada is a good market. Still, they decided to change its path to be in favor of other destinations that were reported not highly dense. I am surprised they never started flights to Boston, that would be another good market for them to get into, but if Air Italy had a solid fleet plan, maybe they would.

eurofly Airbus A330-200 | Photo Credit: Aldo Bidini via Wikimedia

However, there is another market that Air Italy had not brought along. Meridiana uses to be known on flying to Naples and Palermo out of JFK (and vice versa), and yes, it was seasonally. However, those flights were enjoyable and surprisingly profitable; this is due to Italy's summer season, and Meridiana was the only airline flying from JFK to Naples and Palermo. Meridiana, back in 2010, acquired Eurofly, another Italian airline based in Milan on which knew the market and made lots of people happy with a smooth flight from JFK to Naples or Palermo (and vice versa). But as mentioned, these routes were suspended as the airline wanted to utilize the hub and spoke model.

As of May 3rd, 2020, searching via Google Flights for a JFK to MXP flight for November 8th to November 14th, 2020, there are Technically 4 Airlines (American Airlines, Delta, Alitalia, and Emirates) that service this route. Now hold up, don't forget about those codeshare agreements. American Airline Flights from JFK to MXP is under codeshare agreements with Finnair, British Airways, Iberia. Delta flights from JFK to MXP is under a codeshare agreement with Air France/KLM group. So, totaling up with the airline operating these flights, in reality, are four airlines. Still, in airline terms, there are nine different airlines operating flights, even though 1/3 of the flights are just under codeshare agreements. Those airlines don't have to operate the flight, and they would rely on their partners.

Air Italy has flights from Milan to Doha, Qatar; however, Air Italy doesn't operate those flights that are operated on behalf of Qatar Airways. That's the point of codeshare agreements, flights from both airlines that fly the same route provide an appearing increase in the frequency of service on the route by one airline. What I am saying earlier is the airline should consist of rethink the model of Hub and Speak. Focuses on flights that would be efficient for the service and worry about routes that are profitable and would get a lot of customers.

Is Air Italy just Qatar Airways draped with the Italian Flag?

Former Qatar Airway Business Cabin Seats for the Airbus A330-200 under the Air Italy Branding | Photo Credit: Air Italy via The Points Guy

Forbes writer, Ted Reed, wrote an article called "Air Italy Is Just Qatar Airways Draped In An Italian Flag" and it had me think is it true? Surprisingly I may agree with the claim. Looking at the airline, there is nothing special about Air Italy. The airline colors are obviously based on Qatar Airways. The airline received aircraft from its 49% stake owner Qatar Airways like the Airbus A330-200. The aircraft previously operated for Qatar Airways was sent to Air Italy to operate their new long-haul flights. The airline just kept the original cabin interior and just changed the operating system of the inflight entertainment system, repainting the aircraft with the new Air Italy livery, and add Antimacassar (the peace of cloth that is placed on the headrest of the aircraft seats to protect it from grease and dirt).

Rossen Dimitrov, Air Italy Chief Operating Officer | Photo Credit: Air Italy via Airline Ground Service

Most of Air Italy leadership came from Qatar Airways. Air Italy's previously Chief Customer Experience Officer and then Chief Operating Officer, Rossen Dimitrov, came from Qatar Airways. Most of the leadership like Captain Konstantinos Iliakis, Chief Flight and Ground Operations Officer of Air Italy, formerly worked as the Chief Flight Operations Officer for Qatar Airways. I understand that a well-effective airline that owns minority shares in the airline does not give them the privilege to have most of the airline's key executives, working for Air Italy. To me, it's just completely wrong. Maybe if they were advisors or maybe have one person be sent to work for Air Italy, it would not be suspicious.

Air Italy Aircrafts, issues that never was resolved

Earlier I talked about Air Italy planned in the next 5 years to get 50 new aircraft. Since the airline announced its operations to ceases, the airline never got the Boeing 787 - 8 Dreamlines and had 3 Boeing 737 MAX 8, which where grounded. In an interview with Alex Macheras, Air Italy COO Rossen Dimitrov announced that Air Italy would abandon the Boeing 787 Dreamliner Launch.

"Because of the delay in Boeing 787 Dreamliner deliveries, we have decided to expand the fleet with Airbus A330s instead. We will add more A330s this year, and next year too"

- Rossen Dimitrov, Chief Operating Officer (COO) of Air Italy

I was surprised when that announcement came out. So why did they abandon the plan? Well after finding out and with Rossen Dimitrov's explanation, here is the truth. As the Boeing 737 MAX 8's, were ordered for Qatar Airways. Qatar Airways subleased the aircraft to Air Italy. But the MAX 8 are new aircraft that Qatar Airways never received because they wanted Air Italy to operate them. The Boeing 787 - 8 are already in operations with Qatar Airways. Qatar Airways also ordered the Boeing 787 - 9 Dreamliners for their operations. So they wanted to do?

A so-called "Exchange" with Boeing. The plan was Boeing delivers the 787 - 9 to Qatar Airways. Qatar Airways gets the 787 - 9 and Sends the 787 - 8 to Air Italy. With Boeing had backorders of the 787, they had to delay the Orders for some Airlines (including Qatar Airways). But questions where mounting on the 787's. As I mentioned earlier, referring Air Italy is Qatar Airways draped with the Italian Flag. Some people where wondering would Air Italy pull the same stunt with the Airbus A330-200, keeping the same cabin design and just update the small things.

Air Italy Boeing 737 MAX 8 on Landing at Boeing Field in Portland, Oregon | Photo Credit: Brandon Farris via Airways Magazine

Now let's talk about the 737 MAX 8. Air Italy had 3 Boeing 737 MAX 8 in service before grounding them after every Civil Aviation Authority grounding the 737 MAX aircraft. Air Italy was that airline that still had to pay for the plane, and the airline complained about it. But thanks to both groundings of the 737 MAX 8 and 787 Delays, Air Itay was considering to operate an all Airbus fleet.

“As you know, the plan was for us to have transitioned now to become an all Boeing operator, with 737 MAX and 787 Dreamliners. But with the groundings and delivery delays, could we see short-haul Airbus? Never say never”

- Rossen Dimitrov, Chief Operating Officer (COO) of Air Italy

Me seeing this, I was like, "you had the opportunity to be all Airbus now you want to". Air Italy considers getting the Airbus A220 (the former Bombardier CSeries). Now with me not liking the A220, I was like "if it could work, let it work". But after that, there was no report of Air Italy considering to get the A220. Overall after seeing Air Italy having a Fleet issue, that's when you should know that the airline may go down under.

Overall Expectations

Air Italy continues to be a disaster similar to Alitalia but even worse than expected. Wasted money in unnecessary things and worry less about other things like its brand. Financially Air Italy would have been successful, but due to Fleet, Leadership, Destinations, and Competition, Air Italy was more like a hypocritical Airline.

I like how Air Italy was acting like their the big guy at the bar saying, "oh, I am strong, stronger than that guy, Alitalia over there". But sadly, it wasn't true. Some people may know that I actually supported Air Italy. I did not agree on all that Air Italy's missed managed leadership did, but I still had faith in the airline. Maybe if I was the CEO of Air Italy, perhaps I would make the airline successful.

However, the chapter of Air Italy now came to a close as the airline's board of directors voted to liquidate the company on February 11, 2020. But most recently, a report was released that Air Italy files For US Flight Permission. But who knows Air Italy, for now, is still in Liquidation Proceedings and the airline's employees remain unemployed.