Alitalia - Are they really about to go belly-up?

[aussiedom]

My family and I are visiting Italy (from Australia) for 6 weeks in April-May 2011. We are not flying there with Alitalia (going with Cathay Pacific) but are hoping to include a 3 day side trip to Egypt from Rome.

Alitalia has cheap, nonstop flights to Cairo from Rome, around $260USD roundtrip. This is much less than EgyptAir and the other options.

However, a travel agent here in AU told me it would be unwise to book with Alitalia for this trip as they are in bad shape and may not be around for very long.

Can anyone comment on this, one way or the other?

Dom

 

[trippin_the_rift]

they've been riddled with debt for many years....

I can't comment how their business is going now - but last I heard the government bailed them out..

 

[odysseus]

Would your plans be absolutely devestated if the worst were to happen? It sounds like it's just a convenient option so the risk may be worth it, though only a call you could make.

 

[Sprucegoose]

Would your plans be absolutely devestated if the worst were to happen? It sounds like it's just a convenient option so the risk may be worth it, though only a call you could make.

Is it an event that insurance would cover?

 

[odysseus]

Is it an event that insurance would cover?

After the collapse of Ansett, local insurers generally got rid of that coverage. However, you would likely be able to get a refund if you paid with a credit card based on the paid for service not being supplied.

I didn't want to suggest that as there can be a number of variables, plus it also doesn't help so much on the ground i.e. if you want to continue your plans then you'd need to purchase a ticket with someone else, and it would almost certainly be substantially more, both being at the last minute and that you're then competing with others in the same situation.

If it were me, I'd buy the tickets, but it's good to be aware of and calculate the risks. I'd rate the risk of them not travelling at all as low, but you can never be absolutely certain.

 

[harvyk]

After the collapse of Ansett, local insurers generally got rid of that coverage. However, you would likely be able to get a refund if you paid with a credit card based on the paid for service not being supplied.

Whilst I'll put in the disclaimer of read the PDS, I'm pretty sure covermore (sold mainly by flight centre) still provide travel provider collapse coverage as part of their insurance products.

According to their website Travel Services Provider Insolvency of $10,000 is offered for both Options and Travelsure products (but not Essentials or Save-More)