Air France/KLM explore Italian marriage

ALAN PEAT THE COMBINED airline Air France/KLM is in “exploratory tie-up talks” with Alitalia at the request of the Italian airline, according to European reports. Group CE Jean-Cyril Spinetta told a press conference last week that the French and Italian airlines had always targeted a merger in the long-term – however Alitalia must be privatised and turned around financially before this happens. This followed a challenge through the press from Italian Prime Minister Romano Prodi, asking Air France/KLM to clarify its position on a merger. Spinetta said they had always supported the idea of an eventual merger and were discussing with the Italian airline how soon its turnaround plans would bring it back to breakeven, whether they shared the same vision, and what synergies could be created. Meanwhile, Air France KLM has just posted a 7.8% higher second-quarter operating earnings of about R5.3-bn, reports Reuters.