Air France KLM announces interest in Alitalia

An official announcement has been made today by Air France KLM that it is interested in buying troubled Italian flag carrier Alitalia.

It is the first airline to formally express an interest in buying the 49 per cent stake in Alitalia owned by the Italian government. Alitalia has struggled in recent years with rising costs, frequent strikes and an increasingly competitive market.

Air France chairman Jean-Cyril Spinetta said: "This major step in European consolidation would not only be beneficial for passengers but would also meet the requirements for the group’s economic and financial stability."

In a statement on its website Air France KLM said it "wishes to share with Alitalia the benefits of the profitable growth strategy it has successfully implemented over the last four years". It stressed the benefits of the deal to Alitalia saying it would be part of the world’s leading air transport group, thus strengthening its position.

The Air France KLM plan would see Rome-Fiumicino Airport act as a hub in the same way as Paris Charles de Gaulle and Schiphol does at present. Many medium and long haul services would operate to and from Milan, with more early morning departures and evening return flights to meet the needs of business customers.

Alitalia's board will meet soon to consider the Air France KLM offer, although rival bids are now expected, and the Italian government hopes to have identified a buyer by Christmas.

© Cheapflights Ltd Craig McGinty