Will Alitalia be next to leave the AEA fold?

With news today that airberlin is leaving the Association of European Airlines (AEA) in the spreading dispute over what is “fair” competition by the major Gulf carriers, the question is whether Alitalia will be next out of the AEA door?

Etihad Airways purchased a 29% stake in airberlin in December 2011; as such, the German carrier is one of constellation of equity partner airlines that Abu Dhabi-based Etihad has created. Other equity partners include Aer Lingus (2.9%), Air Serbia (49%), Air Seychelles (40%), India’s Jet Airways (24%) and Virgin Australia (22%).

Alitalia joined the constellation in August 2014 when Etihad acquired a 49% stake in the Italian flagship.

Alitalia is an AEA member, but it may now be under pressure to leave. British Airways and Iberia both quit AEA in March over the same issue; Qatar Airways has a 10% stake in their owner, IAG.

In the US, Airlines for America (A4A) has so far taken a neutral stance, even though three of its members, American Airlines, Delta Air Lines and United Airlines, are the carriers that started the whole anti-Gulf carrier campaign. They commissioned a report alleging that Emirates, Etihad and Qatar benefit from more than $40 billion in state subsidies. But some A4A members – most notably and publicly FedEx – are against the campaign. JetBlue Airways has also said that for small carriers like itself, partnerships with the Gulf carriers provide important feed and allows them to extend their networks internationally in a way that would not otherwise be possible.

It’s all building up to what could be a very interesting association event -- indeed the biggest association event of them all – the IATA AGM in June. The meeting will be in Miami this year – the first time in many years that it has been staged in the US (last year it was in Doha and Qatar Airways was an excellent host). Of course, there is nothing on the preliminary AGM agenda or media program related to the Gulf carrier dispute, but without question this is bound to surface in one form or another, and be a topic of conversation in private meetings and during networking breaks. But IATA, you can be certain, will maintain a highly diplomatic and neutral stance even as some of its most prominent member airlines duke it out.

I can’t wait …