Takeover talks between Air France-KLM and Alitalia have broken down after unions failed to back the deal.
Air France-KLM’s takeover offer of Alitalia was dependent on Alitalia’s trade unions, who represent ground staff and flight crews, agreeing to the proposed restructuring plan.
The unions put forward their own proposals which Air France-KLM revealed would involve retaining some elements of the company which are generating large scale-losses. Air France-KLM said in a statement it was : “Reluctantly forced to accept that there was no longer any basis for further negotiations.”
Air France-KLM chairman Jean-Cyril Spinetta said: “I regretfully acknowledge the breakdown in negotiations, which is none of our doing. This is a project I have profoundly believed in and continue to do so, because it would have ensured Alitalia a rapid return to profitable growth.”
- Alitalia’s press release on the stalled talks.