Alitalia Airlines is headquartered in Rome, Italy and is the 19th largest airline in the world.  Its main hub is at Leonardo da Vinci-Fiumicino Airport in Rome.  Alitalia Airlines serves 24 domestic and 66 international destinations. Alitalia’s top 12 flights originate from Rome.  It is a member of the Sky Team Alliance, one of the top airline alliance programs in the world, and offers a frequent flyer program called MileMiglia.  Members earn miles by flying on Alitalia or its partner airlines, including the airlines that form the Sky Team Alliance.

Alitalia’s first domestic flight was in 1946, from Turin to Catania and then to Rome. Alitalia’s maiden international flight took place in 1947 with a flight from Milan to South American. Its present fleet consists primarily of Airbus and Boeing aircraft, as the company makes strategic changes to expand its presence in the international market.

Alitalia Airlines has struggled financially for decades, with numerous takeover and merger attempts occurring in recent years.  Its financial difficulties can be tied to problems with pilots and crew members, labor issues and government interference. Alitalia Airlines has only recorded one profitable year, 1998, since it was founded over 60 years ago.  The Italian government stopped investing money into the airline in 2006 on the orders of the European Union. The airline went bankrupt in 2008.  Alitalia Airlines became a private company in January 2009 when Air France-KLM bought a 25 percent stake in the airline, and the Italian government agreed to lower its stake in the airline.

The “new” Alitalia Airlines merged with Air One, which operates a high-frequency scheduled network to 36 destinations in Italy, Europe and North America.  Air One’s main hubs are located in Rome, Milan and Turin.  The airlines are partnered under a consortium called Compagnia Aerea Italiana (CAI), which finalized its purchase of the two airlines in December 2008.

Prime Minister Berlusconi had called for the formation of the consortium, which derives its investment capital from wealthy Italian entrepreneurs and banks. The consortium assumed Alitalia’s debts, which led to public questions as to how much the Alitalia sale was subsidized by taxpayers. The new company was formed with a capital of 1 billion euro, and promised a five-year plan to bring the new airline to profitability by 2010. Over 12,000 workers of the “old” Alitalia kept their jobs in the merger, but another 3,250 jobs were eliminated.

Alitalia officials anticipate that the 25 per cent minority stake held by Air France-KLM will help the new company to achieve its goals of profitability and expanded presence in the international market. The new partnership is a good deal for the flying public, as the chances to earn and spend frequent flier miles through MileMiglia are greatly expanded.

Alitalia continues to provide charters for a well-known jet nicknamed “Shepherd One,” used by the Holy Father whenever he leaves the Vatican on flights around the world. The new consortium is expected to continue to provide Shepherd One.

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