Italian say goodbye to their 'beloved' Flag Carrier Alitalia. The Italian government decided to create a new one, rather then try continue endless cycles of bailing out Alitalia.
This is the problem with continue bailing out Flag Carriers that mostly are SOE's. Asian government also share many problem with their Flag Carriers:
On March 2, Thai Airways will submit its business rehabilitation plan to the Central Bankruptcy Court. After that, in around May, the court will assemble Thai Airways' creditors to vote on the plan. If a majority of creditors vote yes, the court will appoint rehabilitation plan administrators...
www.bangkokpost.com
Garuda Indonesia menyimpan krisis dan berbagai masalah di dalamnya. Apa saja? Apa solusinya? Halaman all
nasional.kompas.com
Above just examples that some Asian Government facing with their failings Flight Carriers, from Thai Airways, Garuda Indonesia and we can see others also facing similar financial trouble.
Granted COVID multiple the problem significantly. However many flag carriers that have problem, actually already facing it before the COVID. That's always a problem on SOE's in many countries. The mentality that in the end the government (ie the tax payers), in the end will bail them out.
Most of Governments continue bailing them out cause the Political pressure on saving them. Many due the historical prestige, also pressure to save the SOE's employee, but many also due to Political interest that SOE's like Flag Carriers bring on the Political circles (especially with rulings Parties).
That's always the problem with SOE's, tendencies to be used by whoever parties that rules at that moment. In the paper it can be avoided by making them more professional handle. However also has to be shield from Political interest from changing administrations cycles. The later ones that are difficult, but also doable depends when Political circles can be 'force' to create regulations that shields SOE's from Political interest.
However the most difficult ones actually to change mentality from SOE Executive and Employee, that they have to work and responsible as working commercial entity's and not government institutions. This means changing the mentality that already build for decades. For that sometimes it's better perhaps just to build new ones
Anyway, the Italian examples should be one that can be used as bench mark to other governments that facing problematic Flag Carriers. If it can't be help, then those flag carriers has to be let to failed as a regular commercial entities course. Better to create new ones that try to revive problematic ones.