Air France ready to reduce job cuts for Alitalia takeover: reports

Air France-KLM is ready to reduce the number of job cuts at Italian flag carrier Alitalia from the 2,100 it initially wanted in an effort to get its takeover offer accepted, local reports said.

ROME: Air France-KLM is ready to reduce the number of job cuts at Italian flag carrier Alitalia from the 2,100 it initially wanted in an effort to get its takeover offer accepted, local reports said Tuesday.

The Ansa and RadioCor news agencies, citing union sources, said that by changing some of its planned aircraft, Air France-KLM could keep more staff.

At the same time, the closing down of Alitalia's cargo service by 2010 was now being considered as an option, not a definite choice, with Air France-KLM to seek an outside report on the freight operations next year.

Meanwhile, an Alitalia spokesman said talks between the unions and Air France-KLM that were to have resumed Tuesday have been put back to Wednesday.

The delay was decided on to allow "technical reviews," he added, without giving further details.

After talks Monday, the deadline for takeover negotiations between Air France-KLM and Alitalia unions was extended to Wednesday.
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The Franco-Dutch airline has said it will not take control of Alitalia, in which the Italian state holds a 49.9 percent stake, without union agreement and the accord of the new government to be elected April 13-14.

Opposition leader Silvio Berlusconi, who is tipped to win the premiership for a third time at the polls, repeated on Monday that he would reject the Air France-KLM proposal for Alitalia and wanted to see an Italian solution adopted.

Alitalia is on the brink of bankruptcy, losing about one million euros (1.6 million dollars) a day.

Air France-KLM's plan currently calls for a generous severance package for about 1,600 employees to be laid off from Alitalia's flight operations and 500 from AZ Servizi, the ground services unit, which is to be shut down in eight years.
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Italy's outgoing centre-left government approved the acquisition on March 17 via a share swap that valued Alitalia at 140 million euros.
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