INFO: ITALYNEWS

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Hi to all,
further news from Italy:

ALITALIA They intend to save to 541 million =80 to aim until the 2006 these=
=20
are the savings with which Alitalia it heads to catch up the balancing=20
budgetary in order to return from 2007 to compete with the competitors.=20
This is the total value  of the cuts about expenses that the company is=20
prefixed to catch up within 2006 through the  reduction costs for the=20
purchase of goods and services (225 million =80 in 2005), from=20
the  restructure of the trades area (250 million =80 to have save at the end=
=20
of  2006) and thanks to the agreements on the cost of the salaries (66=20
million =80, while 33 in the current year and furthers in the next year =
 from=20
the productivity recovery). The total of 250 million =80 between greater=20
revenues and minors costs in the marketing division before the end of  2006=
=20
is emerged today in the meeting between the company  and the trade unions=20
(it will continue tomorrow) in which it has been released a picture of the=
=20
situation.  A new data projection has been released until   2006. Alitalia=
=20
will increase the total seat offer of the network  of 10% between=20
2005-2006, and of 16% more between 2007 and 2008, but the greater efforts=20
will regard the domestic market in order to recover market shares, today=20
laid a trap from the  low cost carriers. In order to make it, the new=20
manager Giancarlo Zeni and the  sales and pricing manager Pierandrea Galli=
=20
have explained the plan ( as reported to the trade unions -- they thinks to=
=20
take advantage of the partnership with Sky Team alliance carrier and to=20
tighten agreements with carriers that operate on the domestic market so as=
=20
to  upgrade the own activity on the hub of Fiumicino and Malpensa and to=20
increase the offer on the medium and long range, also optimizing the use of=
=20
them at least until to 2006 (expiration within which Alitalia cannot=20
upgrade the fleet following the indications of the European Community on=20
the temporal loan  of 400 million =80). Beyond its planned an increase of=
 the=20
day operations, it is planned a new fit configuration of the seating=20
on  B767 deployed on  intercontinental routes (in business) and of the MD80=
=20
that more cover international destinations (in economic class), so as to=20
respond  better to the demand of the market. Alitalia heads also to improve=
=20
the performance on the international network  (where the interests are for=
=20
destinations in the Mediterranean and in East Europe) and intercontinental.=
=20
After to have reopened in the current year the routes to New Delhi and=20
Washington, the next year it wants to resume the flights to  Shanghai and,=
=20
between 2007 and 2008, with the new purchased planes to fly to Rio de=20
Janeiro, Hong Kong and Atlanta. Upgrading the his presence on Fiumicino and=
=20
Malpensa (where is previewed also an increase connectivity, with the=20
reduction of the transit times , respectively of 17.4% and 34%), Alitalia=20
can exceed the penalization from the operations from on Milan-Linate.=20
Carrier engagement  will be also due to improve the accesses to the hub=20
with the support of the municipal transport companies such to concur, as an=
=20
example, check-in in railway station, and to offer a service 'end to end'=20
to the business travellers pre and post flight, as an example with=20
reservations of cars or hotels. But it will be necessary also to take part=
=20
on infrastructures with better ways than approached the hub, where to=20
realize terminal it dedicates to the Alitalia customers. It is believed=20
also to reshape the services in class Magnifica and Business while=20
the  catering services will be based on the offer of made in Italy=20
products, in a position to throwing again also the Alitalia brand in the=20
world. For all the members of  Millemiglia frequent flyer card the=20
possibility to use both the  network covered from the SkyTeam alliance=20
partner. In the philosophy of the new business plan 2005-2008 designed from=
=20
the #1 of Alitalia Giancarlo Cimoli, beyond filling up more the airplane,=20
spending less and to sell better, the sale of tickets via telematic=20
channel  will be upgraded while with the travel agencies a boosting=20
agreement has left from  August 1st that is in effect until to  December=20
15th. The fare system moreover completely will be redesigned previewing=20
greater flexibility. Also the cargo transport division  will see a new=20
rebirth with the 'full cargo' in 2005. The five MD11 of Alitalia it=20
arranges will become to mixed configuration in October, in order to=20
completely become cargos in 2005 where will be highly reduced the lasing=20
costs payed today to Atlas Air to wet lease cargo ships for the airline=20
worldwide freight network.

BLUE PANORAMA AIRLINES resumes today the flight Milan Mxp-Bologna-Bangkiok,=
=20
that has suffered two flights cancellations due to the lack of ships=20
available after the July 16th. 2004 where an engine fire to a company fleet=
=20
B767/300ER. Unfortunately in the market wasn't suitable planes available=20
with the characteristic to operate a long haul flight in double class for a=
=20
regular flight standard service.
Blue Panorama has re routed the passenger in departure with the flight=20
suspended with other carrier like Singapore Airlines via Rome. Eventual=20
travellers without intention to lose time and to prefer to postpone the=20
departure has been refunded with the fullprice of flights and packages plus=
=20
an extra 300=80 gift money compensation for the disturb created from the=20
situation that has affected the flights.
Blue Panorama in spite of the situation has invested that resources in the=
=20
optic to have a relevant image especially because the route has been=20
commenced from a month with interesting results from that new market.
At the moment the B767/300ER EI-CXO in the first period grounded from the=20
Civil Aviation Authority investigations now is in reworking to be=20
airworthiness soon. To supply to that inconvenience for the network an Air=
=20
Plus Comet B747/200 has been wet leased to fill the gap.

NEW CARRIER.....unknown is the name of a new italian low cost carrier is=20
expected to be open in Italy with 4 A320's based in Verona. Rumors reports=
=20
that Mr. Soddu' (ex CEO in Volare Group until July 15th. 2004) and some=20
related management are involved in that project that probably is a sister=20
of Volar S.A. In the first time could be used the AOC of that Spanish=
 carrier.

That's all for today,
Best Regards,
Marco

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