Air France approves Alitalia-takeover talks stoppage
(dpa) - The board of directors of the French-Dutch carrier Air France-KLM on Monday approved the stoppage of talks with the stricken Italian airline Alitalia about a possible takeover.
In a press statement, the company said it had taken note of the breakdown of negotiations with the unions representing Alitalia workers and "understood and approved the reasons for this situation."
However, the company did not expressly close the door to further talks.
The plan submitted by Air France-KLM on March 14 and amended during later negotiation meetings "was the only one that would enable Alitalia to return to profitable growth within a rapid timeframe," the company said.
Air France-KLM has conditioned its takeover bid on sizeable job cuts and a reduction of the ageing Alitalia fleet. The Italian government has urged unions to be open to compromise.