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KLM Royal Dutch Airlines considers legal action against Alitalia

KLM Royal Dutch Airlines considers legal action against Alitalia

 
Old May 3, 00, 7:17 am
  #1  
doc
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KLM Royal Dutch Airlines considers legal action against Alitalia

KLM Royal Dutch Airlines would consider legal action against Alitalia Spa if it failed to return the EUR100 million it contributed to the development of Milan's Malpensa airport, a KLM spokesman told Dow Jones Newswires Wednesday. The spokesman added, however, that KLM hasn't officially heard from Alitalia as to whether it will return the investment. "All we now is what has been written in the press," he said. "We have to study the issue." Alitalia said late Tuesday it has deposited the EUR100 million paid by KLM with an international bank.

The spokesman said that KLM still hopes to find a new European partner, possibly within a year.

The war of words had broke out over the weekend between the Italian Government and KLM after the Dutch carrier decided to unravel its alliance with Italy's flag carrier Alitalia. The Italian airline is now under intense pressure to find another new alliance partner.

Responsibility for its failure of the partnership was placed firmly on KLM by Transport Minister Pier Luigi Bersani. He said KLM's motives for calling off the alliance were "not very credible" and argued the Italian government had "no blame" in the affair. Announcing a decision last Friday KLM blamed the failure of the Italian government to privatize Alitalia and continuing problems at Milan Malpensa airport, which has struggled to become a major new hub, for its decision to end the alliance.

Alitalia and KLM had signed an initial agreement 2 years ago which was expected to lead eventually to a full merger. Mr Bersani suggested the real reasons for the Dutch decision were "industrial and financial". The privatization of Alitalia, 53% controlled by the IRI state holding company, had been held back in part because it had been difficult to launch a privatization until the airline had completed its alliance and merger negotiations with KLM.

The Italian government is also expected to challenge KLM's demand to be repaid the euro100 million (USD$91.12 million) it has already invested in Malpensa as part of its original agreement with the Italian carrier.

The government had committed itself to privatise the airline by the end of June 2000 and at the weekend renewed its pledge to take the carrier out of state ownership. Industry sources, however, were sceptical that privatisation could be achieved by the end of this year.

Alitalia, which is expected to unveil a euro125 million (USD$113.90 million) operating loss for 1999, may now revive alliance talks with other European carriers particularly since the airline is under pressure to announce an alternative strategic alliance necessary to underpin its future privatization.

Alitalia said the KLM decision would not have an impact on its existing commercial agreements with the two US carriers, NWA & CO, both linked with KLM.

Sadly, I'm afraid that the inactivity in this thread reflects all too well on the rather gloomy state of this alliance! http://www.flyertalk.com/forum/frown.gif

UPDATE: Alitalia is reported to be looking for Air France or Swissair as partner following the collapse of its alliance with KLM Royal Dutch Airlines.

The Italian carrier was unlikely to attract a partner until uncertainties over the timetable for its privatization and the future of Milan's controversial Malpensa hub were resolved, analysts said.

KLM withdrew from its Alitalia deal on Friday, blaming the Italian government for playing a behind-the-scenes but obstructive role in negotiations which had been expected to lead to a full merger.

Northwest Airlines Corp, which was also party to the tie-up, said its long term global joint venture with KLM and its anti-trust immunity, code-share and commercial cooperation agreements with Alitalia both remained operative.
http://news.airwise.com/stories/2000/05/957442675.html


[This message has been edited by doc (edited 05-04-2000).]
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Old Sep 22, 00, 9:25 am
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Anyone expecting KLM to look back once again at AZ with the BA talks now broke off? http://www.flyertalk.com/forum/smile.gif
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Old Feb 2, 01, 8:30 am
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Well, you are not alone! http://www.flyertalk.com/forum/smile.gif

After a week-long rollercoaster ride of speculation over Alitalia's future, the carrier's chairman acknowledged on Friday that it was near to the right conditions to sign a deal on an alliance.

``We are very close to the conditions for a deal,'' Fausto Cereti told reporters, adding that a board meeting would be held on an alliance next week.

Alitalia has been looking for a link-up for months but talks have been on and off with potential partners, including Air France , Swissair and KLM .
http://biz.yahoo.com/rf/010202/l02336503.html
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Old Feb 6, 01, 4:07 pm
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You are just everywhere! What do you do for a living? http://www.flyertalk.com/forum/smile.gif

http://www.flyertalk.com/forum/biggrin.gif http://www.flyertalk.com/forum/biggrin.gif http://www.flyertalk.com/forum/biggrin.gif
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