Aeroitalia cancels (again) flight to London, CEO Intrieri to TFC: "Frequent Flyer launch soon"
A fleet of ten airplanes, with the eleventh arriving in May. Thirteen destinations in Italy and two abroad. More than [...]
AeroItalia
LIN
A fleet of ten airplanes, with the eleventh coming in May. Thirteen destinations in Italy and two abroad. More than one million passengers carried during 2023, closed as well with a profit of about ten million. All this in just over eighteen months and with an initial capital of only 5 million euros. And with important news in the pipeline for 2025.
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About this and more The Flight Club spoke with Gaetano Intrieri, the CEO who along with the two founders German Efremovich and Marc Bourgade built Aeroitalia from scratch.
Intrieri, 18 months after your debut to what do you mainly attribute Aeroitalia's success?
"To our business model, which is a hybrid of low-cost and full-service airlines, in the sense that we have planes configured like Ryanair's and with very affordable fares, but at the same time we offer a free beverage service on board, to which we will also add a snack this summer. And to an absolute focus on every investment, through a policy of 'small steps' that has rewarded us so far."
The year 2023 has been a very good year for you ...
"Absolutely. We ended the year with 120 million in revenues and about 10 million in profits, which were reinvested for fleet growth. In terms of traffic, we grew by 93% over 2022 and today we are fourth in domestic traffic behind Ryanair, ITA Airways and Wizz Air, but ahead of easyjet and Volotea. We are a major operator at key-airports in the Italian air transport system, such as Rome Fiumicino, Bergamo Orio al Serio e Milan Linate. And we have 350 employees but we are continuing to hire to support fleet growth."
That it will always hinge on Boeing 737-800s?
"Yes, although we also operate with two ATR 73-600s that are very useful on some routes and at an airport like Perugia, whose runway is too short for 737s. The ninth aircraft was supposed to arrive as early as February, but instead will be delivered to us in May. Two years from now, if things go as they have so far, we plan to put together a fleet of about 20 airplanes, some of which will almost certainly be MAXs."
The only 'malaise' seems to be the disruptions on Ancona. What has happened?
"I respond to her by explaining what did not happen. Regione Marche failed to meet its commitments on the economic and logistical plan, and we did not get that support, including logistical support, that we expected. Therefore, during March, when our successor will be identified under the Territorial Continuity Plan, we will leave."
The landing-bis in the UK, at London Southend, also failed, after the attempt lasted just a couple of months at Heathrow in winter 2022.
"At Heathrow we had run up against the appalling operating costs at that airport. With our friends at Southend, we made every effort to promote the flight from Bergamo. In February we even launched a 25% discount on all tickets purchased. But the fact remains. For Italians, Southend is too little-known airport and we of Aeroitalia we are in turn too little known to the British traveler."
So far you have focused almost entirely on the Italian market, with the only two exceptions being Bucharest and Bacau in Romania. Will you continue in this way?
"Italy remains our core business. Sicily and Sardinia are doing very well, and in Sardinia I can tell you that Cagliari is one of our priorities for the future. But in Europe we are looking around. Spain is definitely an attractive market for us and for our type of passengers. There we are already discussing a code-share agreement with Air Europa, which would be the first ever for us. In order to develop that kind of agreement we need to join Iata, a process that for us should be concluded soon and then allow us to work on other similar agreements."
What are your plans for next summer?
"We will open four new routes: the Bergamo-Bacau, the Perugia-Bergamo, the Perugia-Lamezia and the Bologna Lampedusa. And we will return with the Perugia-Olbia, the Bergamo-Lampedusa and the Comiso-Pisa. From Perugia, as I said, we will fly ATR72s."
Do you intend to evolve your onboarding service?
"As I explained, from summer we will add a snack to the free offer of water, coffee and tea. But we do not intend to introduce an on-board bar service with other drinks and food for a fee, because it would involve a logistically onerous commitment for us. Instead, we intend to put our hands on the interiors of the cabins to make them uniform in terms of colors and fittings and to make our brand visible to our passengers even once they board the ship."
Looking a little further down the road, what are you working on?
"Assuming 2024 goes the same as 2023 if not better, we have big plans in sight starting in 2025. Starting with the IPO, with which we expect to raise some 50 million euros, and continuing the introduction of a frequent flyer program."
What can you tell us more, about this future loyalty program?
"We are already working on it jointly with Navitair, which is the reservation system we rely on. It is still an embryonic project, for the development of which we will rely on a specialized company. We are also beginning to identify partners, and in this perspective we intend to involve the two important football clubs we sponsor, Atalanta and Lazio. We are proceeding very carefully because the introduction of a loyalty program is a delicate operation, which affects the company's income statement."
