Relaunching in a crisis, Alitalia scales back at home

The deepest crisis in aviation history might seem the worst time to relaunch an airline. But for Alitalia the turmoil could provide just the opportunity to drive through reforms that politicians and unions have refused to accept in the past. Under plans shown to lawmakers, the chronically loss-making Italian airline wants to surrender domestic routes to low-cost rivals as it tries to pull out of its fourth stall in a decade. Despite political and EU regulatory hurdles, new management led by a veteran of Gulf airline Emirates sees the COVID-19 crisis as a chance to reset the business on a profitable footing, according to a detailed presentation seen by Reuters. “Alitalia has tried in the past to cut domestic point-to-point routes, but local politicians or the government always demanded they be restored,” said a company source close to CEO Fabio Lazzerini, named in November to lead the revival. The pandemic offers “the first real big opportunity” to make Alitalia competitive, the source said – thanks also to cheap plane deals and rival airlines’ rising debt piles. But there’s still a mountain to climb, with travel likely to remain subdued for some time to come, low-cost airlines vowing to come out of the downturn fighting, and a new Italian prime minister bringing fresh uncertainty to the political backdrop.<br/>