Air France-KLM Puts Brakes on Alitalia, Looks to Add Long-Haul Muscle
AIN AIR TRANSPORT PERSPECTIVE » SEPTEMBER 30, 2013 by NEELAM MATHEWS Air France-KLM became the first European carrier to operate an Airbus A380 to Shanghai early this month. (Photo: Air France-KLM) September 30, 2013, 11:45 AM Facing high costs and increased competition, Air France- KLM ’s management must pick its battles. Having announced plans for up to 2,800 job cuts on September 18, the European airline this week deferred a decision on whether or not it will provide further investment to plug holes in the sieve-like balance sheet of Alitalia. It holds a 25-percent stake in the Italian carrier, and Italy’s government has indicated it would be willing to see the Franco-Dutch group increase that share to 50 percent. French unions, who have already threatened strike action over the job cuts at home, appear unlikely to view favorably any effort to prop up perennial struggler Alitalia. Meanwhile, Air France- KLM is...