Alaska: The Implications of Alaska’s Newly-Inked Agreement with Air Italy

In an improvement that is probably going to stir some debate in the U.S. airline business, Italian carrier Air Italy consented to a Special Prorate Arrangement with Seattle-based Alaska Airlines including ten additional destinations in the United States to its network. These new destinations incorporate Portland, Oregon, San Diego and Seattle and will be presented with code sharing flights by means of the current Air Italy doors in New York, Los Angeles and San Francisco.

Air Italy’s activities in the United States likewise incorporate flights to Miami from its Milan Malpensa center.

“Alaska Airlines is a well-respected renowned airline and we’re delighted to partner with them to add these 10 destinations to our network,” said Rossen Dimitrov, Chief Operating Officer of Air Italy.

He continued to state: “The U.S., and particularly the west coast, is a new and exciting market for us. This new opportunity with Alaska Airlines will now give our customers even more options to connect seamlessly onto our network from new markets such as the Pacific Northwest, Hawaii and Mexico. At the same time, this new development provides our Italy outbound passengers with a significantly expanded range of options across the west of the United States and Mexico, all of which delivers on our growth plan and brand promise to our customers.”

All inbound Air Italy travelers will almost certainly exploit consistent household connections among Milan and focal and southern Italy, to be specific Rome, Naples, Palermo, Catania, Lamezia Terme, Cagliari and Olbia.

The Italian carrier has as of late been object of examination by a portion of the significant transporters in the U.S. because of its proprietorship structure. Qatar Airways possesses a 49 percent stake in Air Italy and the CEOs of American Airlines, Delta Air Lines and United Airlines purchased an ad in the New York Times last April to urge President Trump to investigate Air Italy’s commercial strategy. It was being suggested that Qatar Airways is using its minority-owned subsidiary as a trojan horse to penetrate the lucrative Europe-U.S. transatlantic market.

This activity by the three greatest bearers in the U.S. was intently trailed by a rejoinder letter to U.S. Secretaries of State and Department of Transportation Mike Pompeo and Elaine Chao, marked by the CEOs of JetBlue and FedEx to “set the record straight” in front of the “misinformation campaign” by their colleagues.

This new agreement signed by Alaska Airlines with Air Italy can be interpreted as a decision by the Seattle-based carrier to side with JetBlue and FedEx in this dispute and therefore consider Air Italy as a fair competitor in the marketplace and not as a “massively subsidized airlines that ignores economic realities” as other airlines claim it to be.