Alitalia crisis in the European air sector segment – Twissen Season Report Spring 2017

During the spring Alitalia, the Italian air carrier part of Etihad, went through another period of crisis, which reintroduced problems related to the surplus of employees and the low coherence of the business model, vision and scenario.

But this crisis, which is not the first but hopefully it will be the last one, develops in a context where airlines, especially European ones, are facing a period of several challenges.
In fact, the socio-political scenario, the Brexit consequences, the lower budget of some customers, both business and private, and safety concerns, led to decreasing prices (and revenue).

Observing the last season, it can be noticed that a major number of people travelling does not always lead to increasing revenue and performances. On the other hand, medium-term expectations are positive. Resilience of Europe as a tourism destination, falling oil prices and, above all, prospects for economic and financial improvement give the European air transport sector a favourable scenario.
In fact, the sentiment is positive and higher passenger flows are expected, even if prices are planned to be still accessible. Economic and financial performances of airlines are still in the public eye, as they proved to be erratic and sometimes not encouraging. 

Competition with low cost companies is becoming fierce, as they are gaining market share. Moreover, Middle East and Asian companies are reaching the top of Airhelp’s ranking.

Is a new phase of mergers and acquisitions coming?

 

In the Report you can also find about:

  • Off the beaten paths with technology on hand
  • Brexit, the year after
  • European funds focus on transnational tourism products
  • Overtourism phobia
  • Alitalia crisis in the European air sector segment
  • A new legislative context for short-term rental in Europe
  • Z Generation, a new target of travellers
  • Reviews and web reputation mark new trends in the accommodation sector
  • Action, travel!

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