26th Nov 2013 18:15
ROME (dpa-AFX)- Budget airline Ryanair said on Tuesday it would open a new hub at Rome's Fiumicino airport, but an offer to strike an alliance with Alitalia was snubbed by Italy's cash-strapped former flag carrier.
Ryanair said it would station six aircraft at Fiumicino from December 18, serving Palermo, Catania and Lamezia Terme in Italy, as well as Barcelona and Brussels. There are plans to increase the fleet to 10 or 12 in October 2014, it added.
Deputy chief executive Michael Cawley also said the Irish carrier could run connecting flights from Italian airports to Fiumicino, for passengers flying on Alitalia's international routes.
"We hope Alitalia will take up our offer to cooperate with them," Cawley told reporters in Rome.
The Italian carrier turned down the proposal, saying it had "its own strategy, its own industrial plan and its own staff" and was able to provide such feeder services on its own.
In a statement, it also complained about Ryanair's expansion to Fiumicino, noting that "in all advanced countries" hub carriers and low-cost airlines operate from different airports.
Had it taken up the partnership offer, Alitalia would have in effect given up on battling against Ryanair on domestic routes, focusing on more lucrative but also highly-competitive, international connections.
Alitalia made a pre-tax loss of 162 million euros (220 million dollars) in the first nine months of the year, compared to a loss of 119 million euros in the same period of 2012.
Its shareholders have until Wednesday to contribute to a 300 million euro (400 million dollar) capital increase that is key to avoiding bankruptcy. The company also hopes to receive 200 million euros in bank loans.
Air France-KLM, which has a 25% stake and is Alitalia's leading industrial partner, has refused to chip in. Italy's publicly-owned postal service, in a move criticized as covert state aid, is due to contribute, with 75 billion euros.
Ryanair, which issued a profit warning this month but still expects to make 500-520 million euros by the end of the financial year in March, already operates from Rome's smaller airport, Ciampino.
Copyright dpa
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