Alitalia’s Board Favors Sale to Air France-KLM

Despite opposition from union groups, Alitalia’s board of directors voted in favor of permitting Air France-KLM to buy the carrier over rival Air One, a group favored by some lawmakers.

The Italian government, which holds a nearly 50 percent controlling stake in Alitalia, will ultimately decide on the buyer for the troubled airline.

Last January, the Italian government opened the process to sell its controlling interest in Alitalia, which is billions of dollars in debt and hasn’t made an operating profit in nearly a decade.

According to an AP report, Air France-KLM said it would focus Alitalia’s operations out of its hub in Rome, possibly diminishing the carrier’s prominence in its other hubs in Italy. Unions fear the plan will result in hundreds of lost jobs.