Air France/KLM in merger talks with Alitalia

[TexasGuy]

Air France KLM in merger talks with Alitalia

AMSTERDAM, Nov 14 (Reuters) - Air France KLM (AIRF.PA: Quote, Profile, Research) is in intensive merger talks with Italian airline Alitalia (AZPIa.MI: Quote, Profile, Research), a Dutch newspaper said on Tuesday.

"The Italian government is working on a resue plan for the airline. A merger with Air France KLM is seen as the only real option," Dutch daily De Telegraaf said, citing anonymous sources at Air France and Alitalia.

In August Air France KLM dampened talk of a rapid merger with Alitalia.........
more here http://tinyurl.com/y2l592

[kozmopolitenka]

"The Italian government is working on a rescue plan for the airline."

finally :cheers:

[Buzz]

"The Italian government is working on a resue plan for the airline.

Rescueplan number 29bis... Will it ever end?

AirFranceKLM will never take over AZ in it's current form. Maybe a controlled bancruptcy, after wich an AF-KLM controlled AZ starts up again?

Otherwise, it's time to say good night to AZ.

[euroflyer]

Nobody with a somehow clear mind and at least half of year of business studies in his/her CV will ever merge with AZ or take over AZ in its current form. I cannot believe AF/KLM is seriously considering such a move.

The Italian market is of course very interesting and several airlines (incl LH) are working on projects to be stronger in this market.

Controlled bankruptcy of the "old" AZ and a new AZ under AF/KLM roof might be a possibility, but I am not sure if the Italian employess and trade unions will buy into this

[sn26567]

... and still a lot of people do fly Alitalia. I was myself with my wife on flights AZ154 and AZ155 from BRU to MPX and return, last Friday and Sunday. Both planes (an MD80 with some 150 seats and an A321 with some 185 seats) were completely full. Service was OK, planes were clean, food and drinks free of charge and of an acceptable quality.

The problem with AZ might be its overstaffing rather than its service.

[Tommypilot]

The problem with AZ might be its overstaffing rather than its service.

Also problems in communication, passenger friendly ground staff? (not everybody off course), huge bagage problems etc.

[BrightCedars]

I'm this kind of traveller for whom price is the most important decision factor once safety and convenience are covered.

I have to say that recently, since about 2 years or so, I'm almost exclusively flying AZ. They have cheaper fares and it is by far cheaper to transit at MXP than many other airports (taxes). Done several BEY with wife and daughter and will do it again this Xmas. Plus a trip to DXB in Feb altogether.

The service is indeed acceptable for their price and in comparison to the crowd. And I don't mind bringing some snack on board to complete their offering.

I really hope they keep flying. Although I do remember that many airlines that offered the best price inthe past often ended belly up or close.

Alitalia needs a cleanup as does Olympic. Not because they're bad companies or even less productive people but because they are competing with differently managed entities that can turn a profit at a lower level than they can, and because it is deemed unacceptable for air travel to be subsidized in today's world.

I think Air France has been serious for years about getting very close with Alitalia but has been reluctant to get involved unless it gets to do its will. Hopefully a formula will enable this and allow the merger to proceed.

Long live Alitalia, a member of SkyTeam.

[BrightCedars]

According to Le Soir (www.lesoir.be), AFKL is indeed engaged in discussions with AZ. Interesting!

[beaucaire]

But Prodi all of a sudden has serious doubts about the future position of AZ within a mega-monster AF/KLM/AZ...
He fears AZ would become a mere feeder for A'Dam and CDG...

[Koenie666]

it just sounds like sabena over again.... with a little bit of difference.. our governement let sabena go down... (which market economics wise was good)

[BrightCedars]

I think Prodi should face reality. Yes Italy is a lucrative market, as are most other European countries.

Milan or Rome will never be LHR, CDG or FRA. They will not be mega hub & spoke but rather point to point, which anyway I think is a more profitable business case. Italy can sustain loads of European traffic and some longhaul point to point traffic, more shouldn't be expected.

Alitalia has its place in the AF/KL network even if it does mean that there will be some rationalization, and like at KLM, some shared focus routes introduced.

[Stij]

Aliatlia's problems is Sabena's problem: overstaffing, high wages, political management in the past and the rest of the cocktail. There's one difference: Belgium is rather good small European pupil, Italy is a rather bad big European pupil. This means that whereas the Belgian government didn't want to (couldn't) do anything against European Competition rules, the Italian government will bail them out again, just because they think they can do it and get away with it.

AF KL will not merge with them or put a € in AZ, the Italian government will not allow that it goes bancrupt and will fund the very very last rescue plan. In a few years we will then have the very very very last rescue plan.

European (and other) laws are like a spider web: the small flies get stuck in it, the big ones just fly thru.

Cheers,

Stij

[chunk]

Well if everyone else has to play by the rules so should Alitalia. It would be a suicede mission for KL/AF to get involved more than they are at the moment without some serious changes at Alitalia. The Italian government needs to show some balls and let it die if necessary cos at the moment taxes are keeping them afloat and that isn;t fair on BA, LH, KL/AF or the European taxpayer.