54 fall to 3014 euros on the Paris stock exchange

The pressures of the Government of Italy to marry his sick airline Alitalia Air France-KLM could eventually lead, despite the reservations of the financial markets which have severely sanctioned, yesterday, the action of the Dutch group, 6.54 fall to 30,14 euros on the Paris stock exchange. Presentation half-year results, Jean - Cyril Spinetta, CEO, spoke about the opening of a "phase of exploratory exchanges" with the Italian company, while recalling the preconditions for a possible merger.

"At the request of Giancarlo Cimoli the Managing Director of Alitalia Editor's note, we opened a phase of exploratory exchanges to verify three points: Alitalia business plan is likely from will allow a rapid return to balance."We share the same vision of the future And finally "what synergies" would result from such amalgamation "This is only if we have satisfactory answers on these three points that we will open discussions", he stressed, thus Relativizing possible merge, not to close the door.

For a recovery plan

On many occasions in the past, leaders of Air France-KLM denied rumours of marriage with the Italian carrier, stressing that such reconciliation, under a 2001 agreement, could not intervene before the Alitalia financial recovery and its privatization. "Little changed over the past five years," said Jean - Cyril Spinetta, who is not, for the time, "Advanced special" on this issue. The only new fact would be the will of Romano Prodi, the President of the Italian Council, to discuss the subject with Jacques Chirac Summit France-Italy today in Lucca. Rome has given until January 10 to Giancarlo Cimoli to complete a new credible rescue plan with Air France-KLM or other companies, such as Air China, Thai Airways, evoked in the transalpine press.

However, a new shade appeared in the speech of Air France. Prior to a marriage with Alitalia is no longer return to balance, but the presentation of a recovery plan "to return to a situation balanced within a reasonable time." What justify a possible union, even though the Italian company expects a worsening of its losses in 2006 and not not provide return to profits before 2008. Air France-KLM could afford. Its financial situation was also flourishing, with 6.3 billion euros of cash.

Sacrifices

However, Jean - Cyril Spinetta has no intention to invest in losses, even for the control of the Italian market. "I do not think the strategy of control of a market by losing money", he repeated. According to a source close to the record, a credible recovery plan move by major changes to Alitalia which should put an end to the scattering of its flights between Milan and Rome as well as between Milan-Malpensa and Milan-Linate, contrary to the strategy of "hub" of Air France and KLM. Which would mean the closure of loss-making lines and major layoffs, sacrifices or trade unions, which have multiplied surprise strikes, nor the Italian Government have so far accepted.

Leo van Wijk, KLM CEO knows something: in 2000, a project of marriage with Alitalia has failed to the inability of Italians constitute a true "hub" in Milan and the Dutch airline had to pay EUR 181 million in costs of failure.