Cattala Aviation Group

Cattala Aviation Group (informally CAG, officially Cattala Aviation Group S.p.A) is a partially state-owned airline holding company headquartered in Jennai Harbour, Cattala and with associated offices in Celeste, Cattala. It was formed in September 2011 following the nationalisation of Regno Aerei and the subsequent restructuring of the aviation sector in Cattala, orchestrated by the Ministry of Transport. It has a 100% stake in both of Cattala's major airlines, Cattala Airways and Regno Aerei and was partially floated on the Jennai Stock Exchange in 2012.

Formation
In October 2011, the Government of Cattala announced it was nationalising the struggling Regno Aerei group and that it would be merged with Cattala Airways Holdings to form Cattala Aviation Group. CAG swiftly bought out the 49% stakes of Corraile Airlines Group and Tirnglobal Logistics, ending the one-year partnership between the three corporations. Both companies made a substantial profit from their investment.

Cattala Aviation Group came under the immediate control of the Ministry of Transport and became the focus of a structural reform of Cattala's aviation sector, beginning with the nationalisation of the two major airlines, reassessment of future aviation expansion and eventually the sale of Jennai International, Calora International and Roumeli International Airports in autumn 2012.

The Ministry appointed Alessandro Strausse, a successful CEO at former state-owned electricity company NEG Worldwide and once a partner at Regno Aerei, was headhunted by CAG and appointed Chairman of the group alongside new CEO Vincenzo Cargiolotti, who leads both airlines as well as working alongside Strausse at the holding company.

Restructuring
At the time of the merger, Regno Aerei was the largest airline in Cattala, serving 68 international destinations, and dominated its rival-turned-partner Cattala Airways, which served just 19 destinations in Europe and North America before the merger. Both airlines competed on certain routes and suffered as a consequence of the competition, so a plan to transfer routes was created. Regno Aerei became Cattala's intercontinental airline, with a focus on Asia and the Americas. Cattala Airways closed its Corraile route and took over all European, Middle Eastern and North African routes from Regno Aerei, except the routes to Heathrow and Dubai.

After lengthy restructuring and the rebranding of Cattala Airways, nineteen Airbus A320 planes and fourteen routes moved from Regno Aerei to Cattala Airways whilst two CA routes and one plane moved to Regno.

Flotation
In early 2012, Cattala Aviation Group's CEO announced the conglomerate's intention to float on the Jennai Stock Exchange, sparking rumours of a complete government privatisation. This was later denied when it was revealed that 50% of the group would be floated whilst another 50% of shares would be retained by the Government. Rumours of a further share sell-off recurred in the summer, leading to a spike in the share price. This was also denied by the government, although a leaked document revealed there are long-term plans to sell off the group in its entirety.