Alitalia plans break up

Alitalia plans break up

Alitalia has decided not to renew its partnership with Air France-KLM, saying it is no longer beneficial for the airline.

The longstanding partnership agreement and ancillary joint ventures between Italy’s national carrier Alitalia and Air France-KLM will not be renewed in 2017, according to the airline’s ceo, Silvano Cassano.

The agreements include the government of passenger services operated by the three carriers between both Italy and France and Italy and the Netherlands and beyond, and incorporated the marketing, sales and distribution of Alitalia Cargo belly services undertaken by Air France-KLM, according to a report in eturbonews.

“These agreements are no longer beneficial, either commercially or strategically, to the new Alitalia and its ambitious turnaround plan. They were negotiated when Alitalia was in a very different position, with the result that the agreements in their current forms favour the other party,” Cassano said.

Etihad Airways acquired a 49% stake in Alitalia in 2014, becoming the airline’s largest stakeholder.

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