Negotiations between Alitalia, Air France-KLM Stopped

The negotiations between Alitalia, Air France-KLM, labor unions and professional associations were stopped as Alitalia announced. The deadline for reaching the effectiveness conditions set out in the agreement signed with Air France-KLM on 15 March 15 was ended on April 2 and therefore, expired.

Maurizio Prato has resigned from his position as the Company’s Chairman and Director. The Board of Directors met April 3 in order to take the necessary and opportune resolutions. Air France-KLM accepts that there is no longer any basis for further negotiations

After several lengthy negotiation sessions, the trade unions formulated a new proposal corresponding to a totally different framework to the one in which Air France-KLM had restricted itself since autumn 2007.

In formal terms, Air France-KLM was thus regretfully forced to accept that there was no longer any basis for further negotiations. This is because Air France-KLM has no mandate from its Board of Directors to follow up this new proposal.

As regards content, the new proposal, which would involve retaining a number of activities generating large scale-losses within the Alitalia group, seems incompatible with the target of a rapid return to profit.