Alitalia plans to scrap deal with Air France-KLM
AFP - [email protected] •
20 May, 2015
Updated Wed 20 May 2015 08:29 CEST
Alitalia said on Tuesday it will not be renewing a partnership deal with Air France-KLM when it expires in
2017 because it is "no-longer beneficial."
Alitalia, which was rescued by Etihad Airways in a merger deal at the end of last year, said the original agreements concluded in 2009 and 2010 were done "under very different economic circumstances."
"These agreements are no longer beneficial, either commercially or strategically, to the new Alitalia and its ambitious turnaround plan," Alitalia chief executive Silvano Cassano said in a statement.
"They were negotiated when Alitalia was in a very different position, with the result that the agreements in their current forms favour the other party," he said.
Cassano said Alitalia remained open to further discussion on finding "a mutually acceptable solution" but the contracts would not be renewed under the present terms.
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Alitalia, which was rescued by Etihad Airways in a merger deal at the end of last year, said the original agreements concluded in 2009 and 2010 were done "under very different economic circumstances."
"These agreements are no longer beneficial, either commercially or strategically, to the new Alitalia and its ambitious turnaround plan," Alitalia chief executive Silvano Cassano said in a statement.
"They were negotiated when Alitalia was in a very different position, with the result that the agreements in their current forms favour the other party," he said.
Cassano said Alitalia remained open to further discussion on finding "a mutually acceptable solution" but the contracts would not be renewed under the present terms.
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