Air Transport World

Alitalia board chooses Air France KLM.(FINANCIAL RESULTS, NEW DEALS, AND REPORTS FROM EVERY CORNER OF THE GLOBE)(Linee Aeree Italiane S.p.A.)(Brief article)

Air France KLM's nonbinding bid for Alitalia received unanimous approval from the Italian airline's board Dec. 21, setting up a debate when the Italian government will have to decide whether to turn over ownership and management of its flag carrier to a foreign company.

The government has indicated that it will have the final say on who buys its 49.9% stake but the five-member AZ board made it clear that it will be a strong advocate for the Franco-Dutch bid rather than that submitted by Italian carrier Air One. The board said that "given [AZ's] current critical financial condition," the AF KLM offer is "the appropriate solution to preserving the company's assets. …

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