• Greater opportunities for MilleMiglia’s 4.6 million members to earn and redeem miles
• Guests who register as new MilleMiglia members before February 28 will receive a double welcome bonus of 4,000 miles
• Acquisition marks Etihad Airways’ third investment in a frequent flyer programme, with majority stakes also purchased in airberlin’s topbonus and Jet Airways’ JetPrivilege, alongside its full ownership of the Etihad Guest programme
• Together, Etihad Guest, topbonus, JetPrivilege and MilleMiglia have a combined total of 14 million members worldwide
• Etihad Airways now operates frequent flyer programmess for seven airlines around the world under its Global Loyalty Company (GLC) umbrella

UAE and Italy | February 3, 2015– Etihad Airways, the national airline of the United Arab Emirates, has acquired a 75 per cent stake in Alitalia Loyalty S.p.A, the owner and operator of MilleMiglia, Alitalia’s frequent flyer programme, with Alitalia retaining the remaining 25 per cent stake.

Alitalia Loyalty will become part of Global Loyalty Company (GLC), a loyalty and lifestyle company that allows Etihad Airways and its partners to target the global loyalty market more effectively, whilst driving technology and back office synergies. GLC also consists of Etihad Airways’ Etihad Guest, airberlin’s topbonus and Jet Airways’ JetPrivilege programmess. Together, Etihad Guest, topbonus, JetPrivilege and MilleMiglia have a combined total of 14 million members worldwide.

The addition of MilleMiglia will lead to enhanced opportunities for members to collect and redeem their miles around the world. In addition, it will give GLC true global scale and a critical mass of valuable, high-spending consumers.

The big news this week is from Gogo: The company announced today that it has received regulatory approval from the FCC to operate its next generation in-flight connectivity technology – 2Ku. The FCC approval clears a major hurdle in the path to launching the new service. The approval is a blanket approval from the FCC for Gogo to operate its 2Ku system on 1,000 aircraft. “Clearing the necessary regulatory hurdles to provide this service to an aircraft flying anywhere around the globe is no small feat. Gogo has proven it is a leader at navigating these environments for all aircraft types no matter where they fly,” said Michael Small, Gogo’s president and CEO.   “We are happy that the launch of 2Ku is proceeding as planned and are continuing to work with the FAA on approval for installation.” Gogo expects the new 2Ku technology will outperform other global connectivity solutions currently available in the market. The new antenna technology is expected to deliver peak speeds to the aircraft of more than 70 Mbps. The advantages of 2Ku are significant. The antenna is more spectrally efficient which means it will produce more bandwidth at less cost than competitive solutions.   2Ku’s performance benefits will be even more dramatic in tropical regions where other satellite solutions degrade significantly due to restrictions associated with operating at high skew angles. The antenna itself is only 4.5 inches tall and the low profile produces very little incremental drag on the aircraft. The 2Ku antenna and its increased spectral efficiency are compatible with today’s Ku satellites and future Ku satellites, including future spot beam satellites. When future satellite technologies become available, Gogo expects peak speeds for the service in excess of 100 Mbps. Because the antenna can be used with any Ku-satellite, it also avoids the single point of failure that comes with reliance on a single satellite for connectivity in a given region, and offers airlines much desired redundancy and reliability.

If you forgot about what 2Ku actually is, and how it works, we have a perfect solution – look here!

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Aircraft Interiors Expo 2014 will again be at the Hamburg Messe, April 14 – 16 this year in Germany and you can keep abreast at www.aircraftinteriorsexpo.com. To steal from their press release: “The countdown is now on for next year’s Aircraft Interiors Expo which takes place at the Hamburg Messe in Germany from 14-16 April 2015. Organized by Reed Exhibitions, Aircraft Interiors Expo 2015 will be the essential hub for the aircraft interiors industry to view groundbreaking new products and innovative technologies, as well as networking with exhibiting companies and professional visitors on both the conference and show floors. The demand for air travel, particularly from new emerging markets, will see the global airline fleet witness extraordinary growth over the next decade. Developing markets in the Asia Pacific and the Middle East will continue to serve as the main catalyst for this upward trend. According to a recent Airbus global market forecast for 2014-2033, China will need more than 5,300 new passenger aircraft and freighters at a total market value of US$820 billion – this represents 17% of the world total demand for over 31,000 new aircraft during the next 20 years. Factors such as the increase in demand for cabin customization to enhance passenger comfort, together with increasing passenger growth rates, are boosting the cabin interior market worldwide. The cabin seats market is predicted to be best overall performer in the sector.”

As they note about the exposition; “Aircraft Interiors Expo is the world’s largest event dedicated to sourcing the latest innovations, technologies and products for the cabin interiors, inflight entertainment and passenger comfort industries. Taking place in Hamburg from  14- 16 April 2015 the exhibition attracts thousands of buyers and decision makers from major scheduled, regional and charter airlines and offers the opportunity to meet face to face with suppliers and manufacturers covering the full spectrum of the industry.” Also, we note that a total of 74 submissions were received for the Crystal Cabin Award 2015. After detailed examination we understand, the six members of the preselection committee have approved 68 of these for the shortlist. In the next stage, the international jury of 25 experts, including representatives of various airlines, aircraft manufacturers, suppliers, and technical service providers, along with university professors, consultants and specialist journalists, will now evaluate all accepted entries, so that the finalists for the seven categories can be nominated shortly before the Aircraft Interiors Expo (14 – 16 April, 2015). The winners will be crowned, as they are every year, at a formal gala event held in association with the Aircraft Interiors Expo in Hamburg.

Also, don’t forget the other reason for going, the World Catering and Onboard Services Expo will take place there as well. “Visitors will include onboard services and retail buyers, food and beverage buyers as well as procurement representatives from air and rail travel operators. The exhibitor base includes providers of snack foods, pre-prepared meals, food service equipment, hygiene products and services, food packaging, passenger comfort products and onboard retail items.  In other words, you had best go because all your friends and competitors will be there. By day we will be roaming the floor (more on that later) but we will have more later on this event!

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An ‘“industry source” sent this update on the new CEO at Zodiac Inflight Innovations – please welcome him: Zodiac Aerospace is pleased to announce the appointment of Matt Smith as CEO of Zodiac Innovations (Zii) as of January 19^th, 2015. Matt replaces Rod Farley who will enter retirement at the end of January. Rod has been an integral part of creating Zii, serving as a leader in the former IMS Company and Zii CEO for the last 2 years. His customer focus has been instrumental in making Zii a key player in the IFEC industry. We are going to miss Rod and wish him all of the best in his future.

Matt joins Zii from Panasonic Avionics Corporation where he spent the last 6 years and was recently Senior VP of Operations. He was also the Chairman of Panasonic Corporation Singapore (PACSS) joint venture. Previously, Matt was with Rockwell Collins in both Avionics and Inflight Entertainment, and Honeywell Aerospace in Avionics. Matt has a Bachelors and Masters Degree of Electrical Engineering from the University of Wyoming. Matt will be based in Brea, CA office.

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The folks at Bell-Pottinger sent us an Alitalia update and here is a condensed version: “Change is underway at Alitalia as they will introduce new routes, new product and service standards, a new cost management strategy and new branding, as the foundations to build a premium global airline representing the best of Italy. Mr Hogan (CEO) said that Alitalia’s major investors had set a clear deadline for the airline to deliver profitability by 2017. He said; “We need to create a performance-based, customer-focused culture which results in a sustainably profitable airline, one which can grow over the long term.” Alitalia and Etihad Airways and its partners are exploring opportunities to improve jointly fleet efficiency.  For example, Alitalia is in the process of relocating 14 Airbus A320s to airberlin, and looking into options with Etihad Airways to acquire additional wide-body aircraft for Alitalia. Alitalia will also have opportunities to receive aircraft from Etihad Airways’ existing fleet order book. Alitalia Società Aerea Italiana (alitalia.com) is a completely private company that started operations on January 1, 2015. The new Alitalia is a limited company with an Italian majority share and a 49% share owned by the industrial partner Etihad Airways, U.A.E.’s national airline.”

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As you may know, 2014 was certainly the year of the “hack” and data breaches are now a weekly event. The folks at Zenedge provided a very good infographic on the subject and we provide it here for you. While the aviation industry and aircraft have seemingly been lightly affected, you might want to view the 1 hour Internet Webinar Recording that SITA and Recorded Future put together.

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You might enjoy reading Aviation Week’s Person of the year article, especially the Letters To The Editor!

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Lastly, did you know that powdered alcohol is on its way to your local liquor store… if your state doesn’t ban it first. Called Palcahol, the powder, when mixed with water or mix, can deliver vodka or rum flavored drinks with the booze built-in. Boy are the inflight passenger requests for water going to increase.

Italy | January 20, 2015– The strategy for the new Alitalia was unveiled today, with an unequivocal commitment by the new executive team and strategic investors to reinvent the airline.

Alitalia will introduce new routes, new product and service standards, a new cost management strategy and new branding, as the foundations to build a premium global airline representing the best of Italy.

The new Alitalia commenced operations on 1 January 2015, following the completion of equity investments by Etihad Airways and Alitalia’s existing shareholders. The new company’s Board meeting yesterday ratified the business strategy, which was outlined today by Luca di Montezemolo, Chairman of Alitalia, Silvano Cassano, Chief Executive Officer of Alitalia, and James Hogan, President and Chief Executive Officer of Etihad Aviation Group and Vice Chairman of Alitalia.

Luca di Montezemolo said: “The energies, passion and expertise I have experienced at Alitalia in recent weeks do not leave any doubt that the airline we’re unveiling today will become once again a premium Italian airline recognised worldwide. This is why I believe the people in Alitalia are a pillar of the history we’re about to write.

“Our priority is to put the customer at the centre of everything we do. And to do that, we will change many things, starting with the way we work. We need to work as one united team to achieve this great common goal.

“The revitalised Alitalia we envision and have started building, will be an asset to this country, and a driver to support the growth of our tourism and our business.”

James Hogan said Alitalia’s future will rely on major change throughout the organisation.

“In a market still beset by the continuing Eurozone crisis, anything other than rapid, decisive change is simply not an option.

“This is the right strategy, with the right management team to lead it.

“But there should be no doubts at all: we have made a commercial investment that must deliver a commercial return.

“We’ve invested in the new Alitalia because we believe it can flourish again. It will only succeed if there is 100 per cent support from everyone.  The coming months and next few years will not be easy, but if everyone pulls together as one team, Alitalia can grow again.”

Mr Hogan said that Alitalia’s major investors had set a clear deadline for the airline to deliver profitability by 2017.

Outlining the airline’s new strategy, Mr Cassano said: “The new Alitalia strategy is serious, it is exciting and it is commercial.   It is a strategy for success – if everybody delivers.

“It is serious because it has been developed over months by an executive team and a set of partners that share extensive and in-depth industry expertise.

“It is exciting because of the vision and ambition that we have for the brand and for the business. This is the chance to create a new Alitalia, one which Italy can truly feel proud of.

“And it is commercial because that is the only way this can work.  Every single employee at Alitalia has to get into a commercial mindset, one in which the basis of every decision is: Does this add value to our customer? Does it add value to our company? And does it help us to deliver a financial return?

“We need to create a performance-based, customer-focused culture which results in a sustainably profitable airline, one which can grow over the long term.

“The investment we have received from our shareholders gives us the opportunity to do that.”

Mr Cassano added: “A successful Alitalia means jobs, it means trade and it means tourism.  It means a major impact on the Italian economy.”

The key elements of the new business strategy include:

Network

• A new three-hub strategy in Italy.  Milan Malpensa will increase long-haul services, while Milan Linate will increase connectivity with partner airline hubs.  Rome Fiumicino will grow long-haul flying and continue to expand short and medium haul flying to maintain relevance to the Italian market.
• Schedules across the network will be optimised to allow better connectivity, as well as increased codesharing with existing and new partners.
• New routes from Rome include Berlin, Dusseldorf, San Francisco, Mexico City, Santiago (Chile), Beijing and Seoul, with increased flights to New York, Chicago, Rio de Janeiro and Abu Dhabi.
• Alitalia will also add 13 weekly flights from Milan Malpensa, with daily services to Abu Dhabi, four flights a week to Shanghai, and additional flights to Tokyo.
• There will also be increased connectivity with Etihad Airways’ hub in Abu Dhabi, with daily services from Venice, Milan, Bologna and Catania, as well as additional flights from Rome, all allowing onward connections to the Middle East, Africa, the Indian subcontinent, Southeast Asia, China and Australia.
• Venice will be the only Italian airport, in addition to Rome Fiumicino and Milan Malpensa, from which Alitalia will operate services to Abu Dhabi with long-haul aircraft.

Cooperation
While exploring further opportunities to deepen the relationships with Skyteam members and in particular Air France/KLM and Delta, there will be a major new partnership with airberlin & NIKI, as well as increased connectivity with Etihad Airways.  There are also plans to work more deeply with Air Serbia and Etihad Regional. These partnerships will increase customer choice across many markets.

Fleet
Alitalia and Etihad Airways and its partners are exploring opportunities to improve jointly fleet efficiency.  For example, Alitalia is in the process of relocating 14 Airbus A320s to airberlin, and looking into options with Etihad Airways to acquire additional wide-body aircraft for Alitalia. Alitalia will also have opportunities to receive aircraft from Etihad Airways’ existing fleet orderbook.

Guest Services
A new customer-first culture, with new product and service standards across the airline.  A new Customer Excellence Training Academy will deliver skills to all customer-facing staff, while customers will experience traditional Italian hospitality, new food service options, new-look lounges in Rome, Milan Malpensa and Milan Linate.

Brand
Alitalia will launch a new brand and visual identity, covering aircraft, uniforms and all other customer touch-points. While the name will remain unchanged, the new branding will seek to capture and embody the essence of Italy.

June 25, 2014 — Alitalia and Etihad Airways today confirmed that they have agreed the principal terms and conditions of a proposed transaction whereby Etihad Airways will acquire a 49 per cent equity stake in Alitalia.

The airlines will now move to finalise the transactional documents, that will include the agreed upon conditions, as soon as possible. The conclusion of the investment is subject to final regulatory approvals.

London, UK | May 8, 2013– IFP, the Passenger Experience Provider™, today announced an extension to its multi-year agreement with Alitalia to provide a full suite of inflight entertainment services.

IFP will continue to provide its long-standing customer with a wide range of audio, video and local and international movies on demand for the airline’s seat-back and handheld IFE systems.
“We’re committed to providing outstanding customer service and satisfaction,” commented Francesco Cupo, Purchasing Manager at Servair Solution Italia, the service company managing Alitalia’s in-flight services supply chain since November 2010. “IFP’s continued support will help further our efforts to offer a fresh and appealing entertainment programme for our customers.”

“We’re delighted to extend our partnership with Alitalia,” commented Robert Haxton, Managing Director of IFP. “The airline will continue to benefit from our understanding of passengers’ content preferences and we aim to constantly evolve the programming to ensure it remains relevant at all times.”