When Silvano Cassano was offered a chance last year to go back to running a company after working as a consultant, he told himself, “if it’s in Italy, no thanks.”
Today, he oversees not just any company, he’s agreed to take on one of Italy’s biggest corporate turnarounds: Alitalia. After decades of losses and defecting customers, Mr Cassano is making a last-ditch effort to rebuild the national carrier. His plan: dropping unprofitable short-haul routes in favour of intercontinental flights, upgrading technology and pampering customers with better food and seats.
The former executive at Fiat and Benetton Group says he signed up for the task because he was drawn by the prospect of reviving a storied company - the first flight took place in 1947 - with the help of a strong international partner. Etihad Airways, the Abu Dhabi carrier, owns 49 per cent of Alitalia, and Etihad’s boss, James Hogan, worked with Mr Cassano at car-rental company Hertz in the 1990s.
“Alitalia can only thrive as a five-star airline,” Mr Cassano said in an interview at Rome’s Fiumicino airport, as planes painted in the green, red and white company livery taxied on the runway behind him. “Consumers are saying: give us an excuse to come back to you. They want the love affair to start again.”
The chief executive, who cuts a wiry figure in his cropped hair and tailored suits, plans to invest €700 million (Dh2.82bn) over the next three years, half of which will go toward a complete overhaul of the fleet, starting with two new Airbus A330 wide-body airliners to be unveiled in June. Another €100m will be invested for technology.
Mr Cassano has the backing of the political elite and of Etihad’s Mr Hogan, whose company led a €1.76 billion investment to revive the company. That lifeline didn’t come without some demands: Alitalia had agreed to cut 2,000 jobs, even before an accord was sealed.
By 2017, all Alitalia planes will offer Wi-Fi, better food, and new business-class seats decked out in leather, probably from high-end Italian furniture manufacturer Poltrona Frau. Mr Cassano said he’s also considering a refreshed livery design to reflect the company’s rebirth.
“A small airline can survive only if it gets into the niche lucrative premium segment of long-haul flights,” said Andrea Giuricin, a professor at Milan’s Bicocca University who studies the aviation industry.
Mr Cassano is acutely aware of the fact that he can’t turn back time. Alitalia’s short-haul business has all but evaporated as high-speed trains took over in recent years and many customers switched to budget carriers Ryanair and Easyjet, which have opened up bases in Italy.
For his long-haul expansion, Mr Cassano is focused on attracting customers in fast-growing countries in Asia. Alitalia is in talks for a code-share agreement in China in order to reach the country’s 30 top destinations with the help of a local partner. Alitalia will also add routes from Bologna and Catania in Italy to Abu Dhabi, from where passengers can connect on Etihad flights to Africa, India and Australia.
For Mr Cassano, Alitalia’s link with a powerful investor is the model for Europe’s aviation landscape, which he predicts will consolidate around a few major airline groups besides low-cost carriers. Non-European rivals are barred from owning a carrier in the region outright, or else they would lose the landing rights, an airline’s most prized asset.
Alitalia still represents a major challenge. The airline has been unprofitable for almost two decades and customers have moved on to other travel options. Its recent history has been marked by political meddling and lacklustre support from investors.
In 2008, former premier Silvio Berlusconi asked a group of “courageous patriots” to save the company and keep it in Italian hands, rebuffing a previous takeover bid from Air France. The bailout cost Italy at least €4bn including losses and a state-subsidised program to cut jobs, according to research by Milan Bicocca University.
Five years later, the government stepped in again to rescue Alitalia in a €500m package that involved the country’s postal service and two largest banks. After studying the books for a year and working through its list of demands, Etihad last year agreed to buy a stake, adding to its collection of airline holdings it has amassed around the world.
For Mr Cassano, the complexity of the turnaround lies partly in the fact that every part of the company needs attention - from fleet upgrades to new technology to crew training and network improvements. To reflect his ambitions, Mr Cassano has ordered Alitalia’s headquarters be refurbished, saying he can’t motivate employees if they feel that they toil in squalor.
He recalled his first impression of the airline last year when he entered the head office, with only lawyers and consultants on site.
“There was nothing: no vibration, no activity,” Mr Cassano said.
Today, he holds weekly meetings with staff, including pilots, a small yet powerful cohort among employees. “I really feel invigorated when I can have 200 people in front of me, from whatever department, to have a very clear discussion with them: let’s cut the bureaucracy.”
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The Brutalist
Director: Brady Corbet
Stars: Adrien Brody, Felicity Jones, Guy Pearce, Joe Alwyn
Rating: 3.5/5
The specs
Engine: Dual 180kW and 300kW front and rear motors
Power: 480kW
Torque: 850Nm
Transmission: Single-speed automatic
Price: From Dh359,900 ($98,000)
On sale: Now
COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
THE LIGHT
Director: Tom Tykwer
Starring: Tala Al Deen, Nicolette Krebitz, Lars Eidinger
Rating: 3/5
ABU%20DHABI'S%20KEY%20TOURISM%20GOALS%3A%20BY%20THE%20NUMBERS
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How to avoid crypto fraud
- Use unique usernames and passwords while enabling multi-factor authentication.
- Use an offline private key, a physical device that requires manual activation, whenever you access your wallet.
- Avoid suspicious social media ads promoting fraudulent schemes.
- Only invest in crypto projects that you fully understand.
- Critically assess whether a project’s promises or returns seem too good to be true.
- Only use reputable platforms that have a track record of strong regulatory compliance.
- Store funds in hardware wallets as opposed to online exchanges.
Challenge Cup result:
1. UAE 3 faults
2. Ireland 9 faults
3. Brazil 11 faults
4. Spain 15 faults
5. Great Britain 17 faults
6. New Zealand 20 faults
7. Italy 26 faults
COMPANY PROFILE
Name: HyperSpace
Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
Champions League Last 16
Red Bull Salzburg (AUT) v Bayern Munich (GER)
Sporting Lisbon (POR) v Manchester City (ENG)
Benfica (POR) v Ajax (NED)
Chelsea (ENG) v Lille (FRA)
Atletico Madrid (ESP) v Manchester United (ENG)
Villarreal (ESP) v Juventus (ITA)
Inter Milan (ITA) v Liverpool (ENG)
Paris Saint-Germain v Real Madrid (ESP)
Types of fraud
Phishing: Fraudsters send an unsolicited email that appears to be from a financial institution or online retailer. The hoax email requests that you provide sensitive information, often by clicking on to a link leading to a fake website.
Smishing: The SMS equivalent of phishing. Fraudsters falsify the telephone number through “text spoofing,” so that it appears to be a genuine text from the bank.
Vishing: The telephone equivalent of phishing and smishing. Fraudsters may pose as bank staff, police or government officials. They may persuade the consumer to transfer money or divulge personal information.
SIM swap: Fraudsters duplicate the SIM of your mobile number without your knowledge or authorisation, allowing them to conduct financial transactions with your bank.
Identity theft: Someone illegally obtains your confidential information, through various ways, such as theft of your wallet, bank and utility bill statements, computer intrusion and social networks.
Prize scams: Fraudsters claiming to be authorised representatives from well-known organisations (such as Etisalat, du, Dubai Shopping Festival, Expo2020, Lulu Hypermarket etc) contact victims to tell them they have won a cash prize and request them to share confidential banking details to transfer the prize money.
* Nada El Sawy
The specs
Engine: 3.9-litre twin-turbo V8
Transmission: seven-speed
Power: 620bhp
Torque: 760Nm
Price: Dh898,000
On sale: now
How to get there
Emirates (www.emirates.com) flies directly to Hanoi, Vietnam, with fares starting from around Dh2,725 return, while Etihad (www.etihad.com) fares cost about Dh2,213 return with a stop. Chuong is 25 kilometres south of Hanoi.
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
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COMPANY%20PROFILE
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Generational responses to the pandemic
Devesh Mamtani from Century Financial believes the cash-hoarding tendency of each generation is influenced by what stage of the employment cycle they are in. He offers the following insights:
Baby boomers (those born before 1964): Owing to market uncertainty and the need to survive amid competition, many in this generation are looking for options to hoard more cash and increase their overall savings/investments towards risk-free assets.
Generation X (born between 1965 and 1980): Gen X is currently in its prime working years. With their personal and family finances taking a hit, Generation X is looking at multiple options, including taking out short-term loan facilities with competitive interest rates instead of dipping into their savings account.
Millennials (born between 1981 and 1996): This market situation is giving them a valuable lesson about investing early. Many millennials who had previously not saved or invested are looking to start doing so now.
SERIE A FIXTURES
Friday Sassuolo v Benevento (Kick-off 11.45pm)
Saturday Crotone v Spezia (6pm), Torino v Udinese (9pm), Lazio v Verona (11.45pm)
Sunday Cagliari v Inter Milan (3.30pm), Atalanta v Fiorentina (6pm), Napoli v Sampdoria (6pm), Bologna v Roma (6pm), Genoa v Juventus (9pm), AC Milan v Parma (11.45pm)
RESULTS
Manchester United 2
Anthony Martial 30'
Scott McTominay 90 6'
Manchester City 0
More from Neighbourhood Watch:
RESULTS
Bantamweight:
Zia Mashwani (PAK) bt Chris Corton (PHI)
Super lightweight:
Flavio Serafin (BRA) bt Mohammad Al Khatib (JOR)
Super lightweight:
Dwight Brooks (USA) bt Alex Nacfur (BRA)
Bantamweight:
Tariq Ismail (CAN) bt Jalal Al Daaja (JOR)
Featherweight:
Abdullatip Magomedov (RUS) bt Sulaiman Al Modhyan (KUW)
Middleweight:
Mohammad Fakhreddine (LEB) bt Christofer Silva (BRA)
Middleweight:
Rustam Chsiev (RUS) bt Tarek Suleiman (SYR)
Welterweight:
Khamzat Chimaev (SWE) bt Mzwandile Hlongwa (RSA)
Lightweight:
Alex Martinez (CAN) bt Anas Siraj Mounir (MAR)
Welterweight:
Jarrah Al Selawi (JOR) bt Abdoul Abdouraguimov (FRA)
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
The biog
Name: Dhabia Khalifa AlQubaisi
Age: 23
How she spends spare time: Playing with cats at the clinic and feeding them
Inspiration: My father. He’s a hard working man who has been through a lot to provide us with everything we need
Favourite book: Attitude, emotions and the psychology of cats by Dr Nicholes Dodman
Favourit film: 101 Dalmatians - it remind me of my childhood and began my love of dogs
Word of advice: By being patient, good things will come and by staying positive you’ll have the will to continue to love what you're doing
Joker: Folie a Deux
Starring: Joaquin Phoenix, Lady Gaga, Brendan Gleeson
Director: Todd Phillips
Rating: 2/5
The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)
On sale: Now
