April 2, 2008

Final discussions for Alitalia

If the current Italian government is agreeable with the offer of the French group, Air France Klm, the trade unions of Alitalia reject it massively. Indeed the French group bid goes with draconian conditions; 2100 job cuts were expected during the first negotiations. Now the French group is ready to make some concessions: it assures that the renewal of Alitalia staff will be quick to reduce the job cuts. But the Europe's biggest airlines wont make anymore modifications to its bid.
The Italian elections plan on April 13th and 14th increase the controversy, as Silvio Berlusconi announced he may have another offer in about three weeks time. But the economic situation of the Italian airline company requires a quick intervention to avoid a collapse. For many, it seems that S. Berlusconi just plays the pre-electoral game and Air France KL is the only serious offer and opportunity for Alitalia to survive.
For the Italian industry, this is a serious issue as the economic patriotism plays a significant role. Since the governments are no longer involved in their national airlines, it has become clear that a huge process of concentration has started and then at the end, it will remain only 5 or 6 European airlines.
The UK highlights with just cause that for a service company such as the airlines company, being bought up should not be a major issue because it does not lead to a delocalisation of the activity.
However, in spite of the European Union, it still remains a strong economic patrotism in some countries; which it may be the scar of the difficult way to the European integration.

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