Air France-KLM has broken off acquisition negotiations with Alitalia after failing to convince the Italian airline’s workforce to accept the terms of its takeover plan.
Alitalia says chairman and chief executive Maurizio Prato has resigned from his position. The airline’s board will convene tomorrow to discuss the situation.
A spokeswoman for Alitalia confirms that the talks are “finished”. Air France-KLM has yet to comment on the matter.
Alitalia’s board agreed in principle to the takeover proposal last month but it hinged on several conditions including Air France-KLM’s being able to secure the backing of unions.
Air France-KLM had originally set a 31 March deadline to reach an agreement and this was extended until today in a last-ditch bid to obtain union support.
Nine unions have been involved in the talks but have expressed concern over job cuts and the reduction in services put forward as part of Air France-KLM’s recovery plan for the airline.
Source: flightglobal.com's sister premium news site Air Transport Intelligence news