AF/KL Juggernaut Blunted a Bit: Alitalia Offer Cancelled
 

Apparently, the Italian Alitalia unions broke the deal up, though the language used is a bit strained. Here’s the story from AP:

“Air France-KLM said Monday that its offer to buy the struggling Italian airline Alitalia for 139 million euros ($220 million) was “no longer valid.”

Air France-KLM said Alitalia had failed to clarify the “legal situation” after talks on a possible takeover broke off this month.

Air France-KLM, which is based in Paris, said that it had told Alitalia of the decision and that the Italian airline did not meet the necessary conditions. An Air France-KLM spokeswoman would not comment beyond the statement.

There was no immediate comment from Alitalia, which is based in Rome.

Air France-KLM’s offer, announced March 14, called for the layoffs of 2,120 Alitalia employees, among other measures.

Air France-KLM’s bid was the only offer on the table, but negotiations broke down three weeks ago after the company refused to accept Italian union demands."

Of course, this may all be part of the negotiation strategy for the long-term, rather than a final withdrawal.

well...we all know who's in the...financially difficult situation right now.

Maybe Berlusconi will come to his senses and drive this deal along. Ohh wait. Its Berlusconi we're talking about.

I think the most prudent course of action is just to close down AlItalia completely.

I think I also saw some stuff about Berlusconi and Putin getting together for talks. Perhaps the Russians want to get in on the action?

I'm sure the slightly more pressing issue for them to talk about is the security of natural gas supply from Russia. Not sure why Russia would want to run an unprofitable European airline. Heck they can't even manage their own airlines that well.

Not surprising at all. The unions killed the deal and now the airline will die. Berlusconi keeps suggesting that there is an Italian company with the money and desire to run the failing carrier without making any cuts, but there is no evidence of anything close to that in reality. Sad that AZ is likely to go under at this point, but the Italians will get what they wanted.

continental? :confused:

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I am going to move this over to the Skyteam forum.

Aeroflot, for one, has its shortcomings, but one thing it's not is unprofitable.;)

I would just let this airline DIE and let the unions finally realising that what they are doing is killing job for all and they should start to use their brain that cutting jobs at the first place could safe at least the jobs for others partially... simple math but those unions must have failed the Pisa test..