New Alitalia turns one

Beleaugured airline predicts return to profit by 2011

Alitalia aims to be back in the black by December 2011, three and a half years after it declared bankruptcy.

The italian carrier was bought by new company Compagnia Area Italiana (CAI), with 75% owned by a group of Italian shareholders and 25% by Air France KLM.

One year on it is still in debt, but is managing to turn loss into profit, and aims to break even next year.

In the first quarter of 2009, Alitalia posted operating losses of €210m dropping to €63m for the second quarter.

But by Q3 2009, Alitalia could report a €15m operating profit.

This week, Alitalia celebrated the first anniversary since its relaunch under CAI.

In the past year, since merging with domestic carrier Air One under the new company, Alitalia has had a major turnaround.

In terms of the product, in the past year alone Alitalia has invested in new aircraft, spruced up its commuter service between Rome and Milan, and started operating from its own terminal at Rome Fiumucino airport, as well as opening two new lounges there.

In 2009, Alitalia started operating on nine new A320 Airbus and replaced seats with newer models on 50 other aircraft. Today Alitalia has a fleet of 150 planes.

The Magnifica (business) class was also improved, with a focus on Italian wines and food.

Alitalia's fleet renewal plan is set to continue this year. It will include the addition of two new long-haul A330s, on which Premium Economy will be available for the first time, as well as a redesigned Magnifica class.

The Italian carrier will also launch new routes next year, with Rome to Los Angeles, Vienna and Malaga, and Milan Malpensa-Miami confirmed.

Alitalia also launched an improved Rome-Milan service in 2009. A key commuter route for the Italian market, passengers can now take advantage of dedicated parking at the airports, as well as a dedicated, faster check-in and security channel.

At Rome airport, Alitalia now operates out of its own terminal, the newly renovated Terminal 1 which was inaugurated in October.

The terminal is also used by SkyTeam partners, which Alitalia says has dramatically improved the punctuality of connecting flights.

"2010 will be another year full of innovations, What will  not change is our commitment to improve and make Alitalia grow and to give our passengers and our country an airline to be proud of," said Alitalia.

www.alitalia.com