Air France-KLM effectively handed Alitalia an ultimatum last night (7 April) as it released a statement saying its take-over offer is still on the table for the stricken Italian carrier.
It said the plan submitted on 14 March and subsequently amended during numerous negotiations up until 2 April ”is the only one that would enable Alitalia to return to profitable growth within a rapid timeframe.”
The Board of Directors confirmed its support for chairman Jean-Cyril Spinetta”s decision to break off talks with the unions, which were demanding amendments to the take-over proposal.
”It is now up to Alitalia, its employees and unions representing staff to say how they view the future of their airline,” continued the Air France statement.
Alitalia”s Board of Directors admitted the contract with Air France was no longer valid but said it ”still considers this initiative appropriate to ensure Alitalia”s return to a profitable growth.”
And today it is completing its ”analysis of the company”s financial and net equity situation” with the support of leading financial and legal advisors ” bleeding ”1m a day, it could be forced into emergency administration.
This will be chaired by Aristide Police, who took over from Maurizio Prato as Alitalia chairman when the latter resigned following the deal”s collapse last week.
Spinetta expressed frustration at pulling out of the deal, saying: ”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.”
The nine unions were initially horrified at the plan to prune some 2,100 jobs in order to turn the company around, but at least one ” CISL - seemed to be back-peddling yesterday as it released a statement acknowledging that Air France was reconfirming its plan, and that ”it saw an explicit sign to re-discuss, evidently after the elections.”
The Italian election begins on 13 April, and a change of government could alter the situation radically as Silvio Berlusconi ” popular in the polls ” is campaigning to keep Alitalia in national hands.
Italian carrier Air One ” which bid against Air France originally ” is keeping quiet on whether it will revive its proposal. However, in a press conference on Friday it showed it is in rude health, revealing it has confirmed purchase orders for 90 Airbus A320s, of which 14 have already been delivered and are operative, indicating the carrier”s underlying strength.