The board of Air France-KLM has agreed to make a formal offer for Italian carrier Alitalia, but the Franco-Dutch airline will proceed only if Italian unions agree in writing to a restructuring plan involving layoffs.
If the takeover goes ahead it could be the last major move by Air France-KLM boss Jean-Cyril Spinetta who reportedly plans to stand down as chief executive in October when he reaches 65 but he would continue as chairman.
The Alitalia offer includes an immediate cash injection of 750 million euros plus long term investment of 6.5 billion euros to include 88 new planes but also 1,700 jobs cuts from a total of almost 11,500 employees.
Alitalia, which lost a million euros a day last year,has to be sold to avoid bankruptcy.
Domestic Italian carrier Air One still hopes to launch rival a bid; it has gone to courts to try and block exclusive talks between Alitalia and Air France-KLM.
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