Marco Messalla/ROME
Air Dolomiti has posted its first profits since start-up, setting up the north Italian regional carrier for its forthcoming share issue and for the expected order of three regional jets.
The airline, which was founded in 1990, turned in an operating profit of L15 billion ($8.8 million) in 1996, having managed only break-even the year before. Sales came in at L83 billion, but are expected to grow to around L120 billion as the network expands.
The proflt comes as Air Dolomiti prepares to sell 20%of its stock to Italian investors, and is expected to order three 50-seat regional jets - either Bombardier Canadair Regional Jetsor Embraer's EMB-145 - this month.
The Trieste-based airline has a fleet of Aero International (Regional)ATR42s, flying as a Lufthansa partner in to Munich and Frankfurt as well as serving other European destinations.
Other of Italy's fledgling regional airlines have fared less well in the country's now-deregulated domestic market. The largest private carrier, Meridiana, posted a net profit of only L870 million in 1996, down from L5 billion. Sales were also down by 8%, at L476 billion, as the airline struggled to compete. Meridiana, however, has won approval for a restructuring plan after promising employees 20%of the carrier, and threatening to set up a low-cost express operation.
Alpi Eagles is also in the process of major restructuring, hoping to turn around 1996 losses of nearly L23 billion. The air-taxi operator, which moved into passenger services in 1996 with a fleet of six Fokker 100s, has already put a new management team in place.
The operator's aim is to lift sales from only L21 billion in 1996 to the L85 billion mark this year. Break-even is not forecast before1998, however.
Source: Flight International
