PARIS May 16 Air France-KLM has ruled out
stepping in to save near-bankrupt Alitalia, with its chief
executive telling shareholders on Tuesday that its past
experience of cross-shareholdings and a failed merger plan would
discourage it from investing directly in Italy again.
In 2008 Air France-KLM walked away from a planned takeover
of Alitalia after talks with the Italian carrier's unions broke
Earlier this month Alitalia went into administration for the
second time in less than a decade after workers rejected a
"I don't think the past experience of either KLM or Air
France in their relations with Alitalia encourages us to repeat
the experience of a direct presence in Italy, especially since
Alitalia's market share in Italy and Europe and in long-haul
have fallen sharply and we can capture the Italian market
through our CDG (Paris) and Schiphol (Amsterdam) hubs," said Air
France-KLM Chief Executive Jean-Marc Janaillac.
"We will watch what happens with the administrators in the
next six months and adjust our position accordingly," he told an
annual shareholder meeting.
Alitalia remains a partner in the Franco-Dutch group's North
Atlantic joint venture with Delta Air Lines.
(Reporting by Cyril Altmeyer, Tim Hepher; Editing by Greg