Alitalia-Air France deal prepares for launch
Alitalia, the Italian national carrier, is on the verge of forging a strategic alliance with Air France in a move that could lead to the airlines taking mutual stakes.
Italian government officials said on Sunday that Alitalia was in advanced talks with Air France over a commercial agreement.
Francesco Mengozzi, the airline’s recently appointed chief executive, was committed to completing the accord before an Alitalia shareholder meeting at the end of next month.
A renewed bout of speculation over Alitalia’s future emerged on Sunday after Italian daily La Repubblica reported Enrico Micheli, undersecretary to prime minister Giuliano Amato, as saying that a strategic accord with Air France was “almost complete”.
Both Alitalia and the Italian Treasury, the airline’s main shareholder, immediately put out official statements emphasising that the company was also in talks with “other carriers”.
But an Italian government official said Mr Mengozzi, who was appointed to his post three months ago, had decided that Alitalia – which has also been courted by Swissair and Dutch carrier KLM – would ally with Air France. “The decision has been taken, that is what he [Mengozzi] intends to do,” the official said.
Under the terms of the accord, Alitalia will immediately sign a code-sharing agreement with Air France, entering the Skyteam network which also links up Delta Air Lines, Korean Airlines and Aeromexico.
Alitalia and Air France will consider an exchange of shares next year after evaluating the effect of the alliance on air routes, airport slots, market share and their respective fleets.
Mr Mengozzi held talks in Paris last month with Air France chairman Jean-Cyril Spinetta. Air France on Sunday declined to comment on the state of negotiations.
The agreement with Air France would need approval from the Italian government, which owns 53 per cent of the airline and faces a general election in three weeks. But a Treasury official said on Sunday that the decision on the alliance would effectively be taken by Alitalia’s management.
Alitalia has been dogged for more than a year by speculation about a prospective European partner. Last year KLM broke its alliance with the Italian carrier because of disagreements about Alitalia’s privatisation and logistical problems at its Malpensa hub in Milan.
