Alitalia's board last week ratified a 2% share swap with its SkyTeam alliance partner Air France (Flight International, 22-28 October). The agreement calls for an equal share in both airlines to be exchanged by 31 January. Alitalia will pay €50 million ($50 million), while Air France will pay €22 million for Alitalia stock at current prices. The airlines also agreed to hold the shares until at least July 2011. Meanwhile, Air France says it has lost 10.2% of its domestic market to its rivals over the last six months, but plans to respond with a low-fares initiative rather than a low-cost division. Competition has come from the TGV high-speed train and new low-cost carriers. It has performed well on its long-haul network, however. Net income for the first half of the year fell 5.8% to €275 million, due to a four-day pilots' strike in September and the cost of closing its Noumea, New Caledonia base.
Source: Flight International
