Air France-KLM is expected to propose 1,410 job cuts at Italy's ailing airline Alitalia, mainly at the carrier's ground services operations AZ Servizi, as part of its takeover of airline.
Air France will launch a takeover offer for Alitalia on March 14, subject to "suspensive conditions," such as a commitment of the labour unions. However, Alitalia's nine labour unions want to see the details of the Franco-Dutch carrier's plan before making a decision.
The takeover would consolidate Air France-KLM's position as the largest airline in Europe at a time when network carriers are under pressure from low-cost rivals and high oil prices.
However Alitalia's future has become a hot issue in upcoming Italian elections. A takeover would end the 62-year independence of one Italy's most distinctive global brands, which is losing US$1.5 million a day.
Air France-KLM's investors fear it will become bogged down in Italian politics, echoing the fate of previous high-profile Franco-Italian industrial deals in energy.
Alitalia is worth $1.24 million at latest prices.
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