Alitalia on the brink as talks end
ROME – Air France-KLM’s takeover of Alitalia has been abandoned and the Italian airline’s chairman has resigned.
The BBC reported that Maurizio Prato stood down after the breakdown of talks between Alitalia’s unions and Air France-KLM management.
He had warned the unions that Alitalia risked going bankrupt if they did not accept the deal.
A crucial board meeting today will have a bearing on the future of the troubled Italian airline.
The Italian government has been trying for more than a year to sell its 49.9% stake in the national airline and says there are no other bidders.
Earlier, Economy Minister Tommaso Padoa-Schioppa said the only alternative to the Air France-KLM offer would be to put Alitalia into emergency administration.
He also said a US$470 million state bridging loan to Alitalia would be impossible unless the Air France-KLM deal was signed.
The government’s sale of Alitalia has been opposed by Milan’s airport operator and prime ministerial candidate Silvio Berlusconi.
Ian Jarrett
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