Wednesday, November 22,

Alitalia and Air France to Merge ???

The ANNOTICO Report

 

Italy and France will meet to explore an Alliance of their Airlines.

 

Alitalia will receive 4.5 Billion Euro for a 20-30% share of Alitalia, for which Italy will agree to purchase 85 Airbus aircraft to replace its aging McDonnell Douglas MD -80s fleet

 

An apparent Win-Win, with the other Airbus partner, Germany, and to a lesser degree, Britain and Spain seeing the sale of more Airbus planes a profit to the consortium, and therefore will not object. 

 


ITALY - FRENCH SUMMIT TO EXPLORE ALITALIA, AIR FRANCE ALLIANCE

 

 

Forbes Magazine

AFX News Limited
November 22, 2006,


MILAN (AFX) - The possibility of an alliance between Alitalia SpA and Air France will be explored at Friday's meeting between the Italian Prime Minister Romano Prodi and his French counterpart Jacques Chiraq, Radiocor news agency said, citing diplomatic sources.

'Prodi is taking a keen interest (in Alitalia's future). It will be explored whether conditions for an alliance between Alitalia and Air France exist,' the sources told Radiocor.

The summit will be held in the city of Lucca, northern central Italy.

In recent sessions, Alitalia shares have risen sharply amid mounting media speculation about the possibility of an alliance with the French carrier.

Daily Corriere della Sera said today that Alitalia and Air France may ! reach an agreement by the end of the year, involving job cuts and the grounding of several airplanes.

Yesterday, Il Sole 24 Ore reported that the Italian government is examining a 4.5 bln eur plan to negotiate with the French government a rescue of Alitalia and the renovation of its fleet.

Under the plan, Air France would buy a 20-30 pct stake in Alitalia and Alitalia replace 85 of its MD80 short and medium-haul aircrafts with new Airbus aircrafts, it said.

The plan also includes merging into Alitalia some smaller domestic carriers like Meridiana, Volare, and Eurofly.

danilo.masoni@afxnews.com

 

 

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