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Alitalia stops flights to India and China

The very last Alitalia flight from Mumbai took off on Saturday morning. After that, at least for a few months, there will be no direct flights to Italy from here.

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The only direct flights between India and Italy will no longer be available Anita Aikara

MUMBAI: Kareena Makhani, a Mumbai-based fashion designer who visits Italy several times a year, is disappointed that the one airline that took her straight to Milan, the heart of the European fashion industry has just shut down all flights to India. The very last Alitalia flight from Mumbai took off on Saturday morning. After that, at least for a few months, there will be no direct flights to Italy from here. “I will have to look for other options now,” says Makahni.

For some time now, Alitalia has been making huge losses and there have been reports that it might be bought out by the Air France-KLM group. But even as painful negotiations drag on, Alitalia has run out of cash to lease aircraft to destinations like India and China. The company has taken a decision to shut down operations to both countries from March 31, though official sources are calling it a “temporary” suspension; it has not given up its landing rights nor will it shut its India offices.

None of Alitalia employees at its three offices, two in Mumbai and one in Delhi have been laid-off. An employee says, “We have stopped taking bookings but still report to work. We have been assured that our jobs will be in place with Air France and KLM taking over.”

As far as restarting operations is concerned, Tomas Fumelli, Alitalia’s general manager in India says, “Air France-KLM-Alitalia will evaluate the re-opening of India operations once the merger is resolved.”

Alitalia operated 12 flights to Milan, six each from Mumbai and New Delhi per week, with each flight taking around 200 passengers. It also carries cargo.

With Alitalia’s operations on hold, experts believe there are opportunities for Indian Airlines in the cargo business. Says Mark Martin, senior adviser, KPMG, “There is a lot of business between India and Italy. Indian airlines like Air India and others should now look at Italy for the passenger and cargo business.”

Alitalia’s problems are not new as far as European carriers, especially the state-owned ones go. HP Mama, aviation advisor says, “The competition among European airlines in indirectly killing smaller airlines there. In Alitalia’s case, though it had competitive fares, it couldn’t handle competition.” The sale of Alitalia to Air-France-KLM is by no means certain, especially now with political parties making it an electoral issue in the forthcoming election in Italy.
 
a_anita@dnaindia.net

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