What’s Going On With Alitalia Aircraft?

Alitalia went out of business officially in 2021 with ITA replacing the storied carrier, but what’s going on with its aircraft?

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From Alitalia Airlines To ITA Airways

Alitalia, Italy’s flagship airline, was established in 1946 and began operations in 1947, quickly becoming a symbol of Italian elegance and excellence in aviation. Throughout the mid-20th century, it grew to be one of Europe’s premier carriers, recognized for its impeccable service and stylish branding that reflected the sophistication of Italian culture. Alitalia carried millions of passengers across domestic, European, and intercontinental routes, often serving as the airline of choice for dignitaries and celebrities. Its role as Italy’s national carrier gave it a prominent place in global aviation, but prestige masked growing operational inefficiencies and financial instability.

By the 1990s and early 2000s, Alitalia faced mounting financial difficulties due to mismanagement, rising competition from low-cost carriers, and an inability to adapt to a changing aviation landscape. Efforts to restructure the airline were marred by labor disputes with unions, which resisted layoffs and wage reductions, making turnaround efforts increasingly difficult. Despite partial privatization and numerous government bailouts, Alitalia continued to operate at a loss, due to high debt and outdated models. In 2017, the airline filed for administration (more or less equivalent to US Chapter 11 bankruptcy protection), entering a prolonged period of uncertainty. Attempts to sell or relaunch Alitalia failed until 2020, when the COVID-19 pandemic devastated global travel, rendering its situation untenable.

In October 2021, Alitalia ceased operations, and its successor, ITA Airways (Italia Trasporto Aereo), was launched as a state-owned airline. ITA Airways inherited a leaner operational framework, fewer employees, and a restructured fleet to reduce costs and compete effectively. The new airline aimed to shed the legacy issues of its predecessor while preserving its Italian identity. ITA Airways adopted a refreshed branding strategy, modernized its fleet, and entered partnerships with major carriers to secure its place in the global aviation market.

While I can’t quite say I understand the restrictions around converting Alitalia to a state carrier from a private one, starting ITA fresh as a state carrier and then acquiring just the parts they liked of Alitalia is apparently fine.

ITA Airways certainly has the better paint job.

Aircraft Transitioned to ITA Airways

As part of its relaunch, ITA Airways significantly downsized and modernized its fleet, initially acquiring 52 aircraft from Alitalia, including Airbus A319, A320, and A330s. These planes were chosen to streamline operations and focus on efficiency and sustainability. ITA Airways also committed to a fleet renewal plan, signing agreements to acquire next-generation aircraft such as the Airbus A220, A320neo, and A330neo, which offer improved fuel efficiency and reduced emissions. The transition marked a departure from Alitalia’s sprawling, inconsistent fleet strategy, signaling ITA Airways’ commitment to cost-effective and environmentally conscious operations.

What’s more interesting is the amount of aircraft that were not transferred and that the carrier apparently had no plans for them whatsoever.

Alitalia aircraft at Rome Fiumicino Airport

Aircraft Stacked

Flying in or out of Rome Fiumicino International Airport will remind visitors looking out the windows that not all Alitalia aircraft were taken when ITA emerged as the sole Italian flag carrier following Alitalia’s collapse.

Alitalia had 156 aircraft, but ITA has just 56 and some of those aircraft are new. Aircraft that were not absorbed by ITA can be clearly seen parked around Rome’s airport and like others throughout the country.

It’s odd to see 777s stacked on the apron, some buttoned up for the foreseeable future, others appear ready to fly. An A320 had been parted out with at least one engine re-homed. While I can’t be certain how many A320 family aircraft are parked but whole, there’s like a handful or more that could give considerable lift to carriers in need. Yet still, some that didn’t make it into ITA’s fleet still seem to be functional, as late as September one was taxiing and then took off behind one of its ITA siblings.

Couldn’t This Be An Answer For Airlines Desperate For Aircraft?

Delivery delays due to engine issues for new, fuel efficient airplanes are costing airlines to the extent that some have stopped hiring much needed pilots. JetBlue, prior to the Spirit merger, wanted airplanes bad enough to not only overpay for the deal if approved (it wasn’t) but then also to cut Spirit shareholders a $400 million check.

The Spirit deal, which cost JetBlue even more than the Spirit shareholder checks they cut when including legal expenses, marketing, and PR, would have secured just over 100 jets. But they had to go through huge regulatory hurdles to achieve it and ultimately, failed. Imagine how much cheaper and easier it would have been to buy 17 A320-family aircraft and grow organically.

Converted Alitalia A319 now in ITA colors

Aircraft and engine manufacturers, or their insurers, help cover airline offsets incurred by flying less efficient aircraft. While I am sure there are reasonable limitations to replacement equipment, some clever finagling could make it worthwhile for a carrier that already operates similar fleets. For example, United is desperately waiting for dozens of aircraft and just gave up all hope of the 737-MAX 10 joining the fleet, could it not grab some of Alitalia’s (6) 777-200s and adjust operations some?  Wouldn’t it make sense to adjust busy 767s flying trans-Atlantic flights to a 777-200, then upguage a 757 route (or six) which then frees up the 757 fleet for A320 and 737-Max 10 routes that can’t be serviced? Couldn’t United easily swap the aircraft for Hawaii aircraft for which they seem to have no desire to convert the “coffin-class”, eight across business class sections – it would be a huge lift for flyers.

United’s need for A321 aircraft is different than just needing ANY A320/321 because it’s based on the mission it would serve. However, Frontier was looking to grow too. Southwest has just removed flights and reducing pilot count due to Boeing deliveries but unlike the other operators Southwest would lack an operational capability with adopting the A319/320/321 aircraft including pilots, training centers, and maintenance support.

What about a lessor who could get these aircraft up to snuff, and then lease out the fleet targeting airlines waiting for affected Airbus equipment? If the JetBlue acquisition had been approved, the carrier was already clear that they would completely overhaul the aircraft and make them JetBlue planes anyway. The Alitalia equipment is unquestionably older, but given that they have been out of business for three years, they should be available for a song.

Carriers that don’t have mission-specific requirements might be smart to take an incentive from Airbus to drop down the delivery list and receive a credit for the fuel efficiency differences. That would give airlines the ability to grow or replace equipment while airlines wait for delayed deliveries. The same applies to carriers that operate a mixed 737/A320 fleet but may be delayed due to the MAX slowdowns.

Imperfect Solution

There’s no question it’s an imperfect solution to any fleet needs. Alitalia aircraft would need to go through expensive checks, likely some repairs, and branding. It’s not a light switch to turn on and immediately solve fleet problems for carriers throughout the world.

However, the challenges are stacked against airlines:

A nearly half decade long back order at both Boeing and Airbus
Fraudulent materials in engine construction requires inspection, affecting completed airplanes at the manufacturers and pulling planes from the sky
Sustained elevated demand

I drafted most of this post in March and just never got back to it. But Gary Leff, just this week, wrote about the 2,300 Alitalia staffers still on the payroll that have not been transferred to ITA and can’t be doing much of anything. Wouldn’t the sale of these aircraft cover a significant amount of payroll for a defunct airline, wouldn’t it pay some debtors back?

Assuming that the aircraft are too expensive to rehabilitate (despite at least the one pictured which is airworthy and those that were transferred to ITA already) certainly the parking fees alone at an airport like Rome Fiumicino would be a concern. Is it cronyism that’s keeping these aircraft parked on the tarmac?

Conclusion

It struck me as odd to see expensive, modern aircraft stacked in a major hub for what had to have been at least three years and perhaps longer with COVID restrictions. As the world seems to need as many of these aircraft as they can get their hands on, the Alitalia jets can’t seem to find a home. The costs have to be staggering and it seems odd, wasteful, and suspect.

What do you think? Why are the aircraft still parked? Why haven’t they sold?