Plummeting from the sky: the decline of Alitalia

Abstract

This case discusses the decline of the Italian airline Alitalia. It sheds light on Alitalia’s financial problems, caused by its cumbersome relationships with the government and labour unions and a continuous lack of strategic positioning following the disruptive entry of new players in the Italian aviation industry. The case covers the most recent developments that have led to Alitalia’s bankruptcy in 2017 and ends with a case-study situation in which the reader is challenged to find a new positioning strategy and partner for Alitalia to ensure a profitable future.