Air France invites Alitalia to join SkyTeam

Today Air France-KLM is sending a non-binding letter of interest to Alitalia, which will be submitted to the Italian carrier’s Board of Directors.

This proposal is being made to a major commercial partner, with which mutually beneficial agreements were signed in 2001 on air services between France and Italy, and the SkyTeam global alliance.

Air France-KLM wishes to share with Alitalia the benefits of the profitable growth strategy it has successfully implemented over the last four years. As for Alitalia, by joining Air France-KLM, it would be part of the world’s leading air transport group, thus strengthening its position.

Through this partnership with the Air France-KLM Group and its investments, Alitalia would be able to develop a business plan which is in line with the founding principles of the Survival and Transition Plan prepared by the Chairman Maurizio Prato and his management team. To implement this plan successfully, Air France-KLM is counting on the support of the Italian carrier’s entire workforce, who would benefit from the results of their Company’s growth as well as that of the Group.

The purpose of this project is first for Alitalia to win back the Italian market, thanks in particular to the profitable development of its network, to the reputation of its brand and to the assertion of its Italian identity.

Backed by the assets of a major group, Alitalia’s commercial policy (flight schedules and services) would meet the specific requirements of the economic and industrial fabric which forms the backbone of the Italian economy.

A large number of European and intercontinental destinations would be proposed to and from Rome-Fiumicino Airport, which would be organized as a hub in the same way as Paris-Charles de Gaulle and Schiphol. Furthermore, many medium and long-haul direct services would operate to and from Milan, with enhanced service quality to better meet the needs of business customers (early morning departures and evening return flights). Together, Alitalia, Air France and KLM would be able to offer their passengers an unprecedented choice of flight schedules and destinations in Europe and the rest of the world.

“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, including its target of a ROCE after tax of 8.5% by the end of fiscal 2009/2010,” said Chairman Jean-Cyril Spinetta.

At this stage, this process is not legally binding for any of the candidates. After receiving several proposals, Alitalia will choose a partner by the end of the year, with which it will start exclusive talks leading to a firm bid.