Republic - July 10, 2001
ROME - There 's also the merger in the future of' alliance between Alitalia and Air France. In addition to a stock exchange can, of course at the appropriate time, the two companies could achieve a real merger. It 'was the CEO of' Alitalia, Francesco Mengozzi, speaking for the first time this hypothesis in the report presented yesterday to the Board of Directors, which gave the green light for a triple alliance in heaven. Alitalia, Air France and Delta, the U.S. gave it life to a wide-ranging trade agreement, which will lead to the creation of a global network of air links in the 'sphere of SkyTeam, a network with 1,200 aircraft will offer 8,000 flights per day to over 500 destinations around the world to 200 million passengers. Francesco Mengozzi, chief executive of the Italian company, JeanCyril Spinetta of Air France and President Paul G. Matsen senior vice president of alliances for Delta yesterday signed a Memorandum of Rome 'agreement to start negotiations between the three companies to define the financial, technical and strategic collaboration, the duration of which may amount to ten years. "With this strategic agreement ends the isolation of 'Alitalia said with undisguised satisfaction immediately Mengozzi after the signing of the Memorandum of Understanding, approved a few hours before it (with the abstention of the representative of employee shareholders Angels) by the Board d 'administration of Alitalia, whose title is immediately taken off the stock exchange earning up to 3 percent during the session. "The pursuit of cooperation with two ua ecellent companies such as Air France and Delta - said the 'CEO' s Alitalia - opens a world of opportunity for our company, its customers and its shareholders." And the president of Air France added: "The French and Italian markets are very similar. Air France and Alitalia expand the services they want to compete with other European companies that are already part of other global alliances. " For his part, chairman of Delta, Leo F. Mullin said that "through cooperation with Alitalia we can strengthen our position as market leader in global aviation. " In particular, the alliance with Air France will, when fully implemented, an operating margin of at least 200 billion a year for Alitalia. Italy-France links the two companies operate in joint ventures. Since the first year of operation of the agreements, which are expected from April 1, 2002, the Italy-France link companies will share the total operating profit in proportion to their contributions reported in the 2000 (60 per cent and 40 per cent of Air France Alitalia) . From the third year the division will be at 50 percent. On other markets, the two companies will engage in a joint trade policy. In the future, Air France and Alitalia could strengthen the alliance through an exchange of shares - below 3 percent according to Air News.It - to be implemented with a capital increase. However, Alitalia said, "share exchanges will be considered only when they are put conditions that both companies and their respective shareholders deem necessary." But the same CEO Mengozzi has hinted that the two companies look farther, to more integrated, and then to a 'possible merger. The alliance with Air France, which was approved by the Committee of Ministers for the privatization of the Berlusconi government on June 26 last year, further strengthening the French-Italian cooperation in the field transport. - Edward BORRIELLO