Why One of America's Top Airlines Is Eyeing to Buy One of Europe's Most-Troubled Airlines
Alitalia's financial troubles have seen the airline file for bankruptcy twice — the first back in 2008 and most recently in 2017.
Despite Etihad securing a partnership through a 49% stake in Alitalia in 2014, the state of the Italian carrier's finances has remained turbulent. Since then, airlines, including Lufthansa, have gallantly entered bids for the Italian flag carrier, with Delta and EasyJet being the latest to enter the race in 2018.
A recent twist has shown the possibility of an alliance between one of the biggest carriers in the US and one of Europe's leading low-cost airlines — Delta and EasyJet. The joint takeover would mean the two carriers would share Alitalia's long-haul and short-haul aircraft, as well as the slots out of the airline's Italian hub airports in Rome (FCO) and Milan (LIN; MXP). Though Delta can't own 100% of Alitalia, its partial ownership with EasyJet could bypass restrictions about foreign entities owning 50% or more of a European airline.
In terms of route opportunities, the joint takeover could see Delta increase its market share on routes it already operates to Rome (FCO) and Milan (MXP) — also Alitalia's long-haul hubs. Perhaps more interestingly, Delta could have the opportunity to takeover Alitalia's current route network and expand its route network from more US destinations, such as Boston (BOS), Chicago (ORD), Los Angeles (LAX), Miami (MIA) and Washington, DC (IAD). The transatlantic market is arguably one of the most competitive in the industry, and with added pressure from long-haul, low-cost carriers like Norwegian, Delta could see it as time to step in and improve Alitalia's 'adequate' transatlantic crossings.
In the same way, EasyJet could hope to increase its market share in Italy, a country that has been dominated by low-cost rival Ryanair. A joint takeover bid with Delta could see EasyJet becoming a force to be reckoned with in Rome (FCO) by acquiring Alitalia's European slots. Elsewhere, in Italy's Northern city of Milan, EasyJet already holds a strong position at Malpensa (MXP) serving dozens of destinations all across Europe. At Linate (LIN), however, the European low-cost airline currently only operates four routes. So an acquisition of Alitalia's European routes here could see a huge increase in EasyJet's Italian market share as well as feeding passengers from across Europe into Delta's Italy-US routes.
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 5X | New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App. |
| 3X | Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines. |
| 2X | Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Pros
- Valuable dining and food-related credits
- Flexible rewards with airline and hotel transfer partners
- Multiple travel and purchase protections
- No foreign transaction fees
- Access to Amex Offers for additional savings (enrollment required)
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $8,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App.
- Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines.
- Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- Pay It® lets you tap in the American Express® App to quickly pay for small purchase amounts throughout the month and still earn rewards the way you usually do. Plan It® gives you the option to split up big purchases into equal monthly payments with a fixed fee. You’ll know upfront exactly how much you’ll pay.
- Updated! $120 Dining Credit: Earn up to a total of $10 in statement credits monthly when you pay with the Gold Card at Grubhub (including Seamless), Buffalo Wild Wings, Five Guys, The Cheesecake Factory, and Wonder. This can be an annual savings of up to $120. Enrollment required.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year at over 10,000 qualifying U.S. Resy restaurants after you pay for eligible purchases with the American Express® Gold Card. That’s up to $50 in statement credits semi-annually. Enrollment required.
- $84 Dunkin' Credit: Earn up to $7 in monthly statement credits after you pay with the American Express® Gold Card at U.S. Dunkin’ locations. Enrollment required.
- $120 Uber Cash on Gold: Enjoy up to $120 in Uber Cash annually with your Gold Card. Just add your Card to your Uber account and you'll get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an Amex Card for your transaction.
- New! As an American Express® Gold Card Member, you can enjoy complimentary Hertz Five Star® Status. Enjoy benefits like skipping the counter at select locations, adding an additional driver at no additional cost*, and vehicle upgrades**. Benefit enrollment and Hertz Gold+ registration are required. *Additional drivers must meet standard rental qualifications and must be a spouse or domestic partner to qualify as complimentary. Other additional drivers subject to fees. **Benefits are subject to availability and vary by location. Additional Hertz program Terms and Conditions including age restrictions apply.
- Take advantage of a $100 credit towards eligible charges* at over 1,300 upscale hotels worldwide when you book The Hotel Collection through AmexTravel.com or the Amex Travel App **. *Eligible charges vary by property. **The Hotel Collection requires a two-night minimum stay.
- Book your travel through the Amex Travel App with added peace of mind – backed by American Express® service and support. Only for American Express® Card Members.
- Whenever you need us, we're here. Our Member Services team will ensure you are taken care of. From lost Card replacement to statement questions, we are available to help 24/7.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.