Negotiations between Alitalia and Air France-KLM stopped

The negotiations between Alitalia, Air France-KLM, labour unions and professional associations were stopped as Alitalia announced. The deadline for reaching the effectiveness conditions set out in the agreement signed with Air France-KLM on 15 March 2008 was ended on 2 April and therefore, expired.

Maurizio Prato has resigned from his position as the Company’s Chairman and Director. The Board of Directors met yesterday (3 April) in order to take the necessary and opportune resolutions.

Air France-KLM accepts that there is no longer any basis for further negotiations

"When it submitted its final offer on 14 March this year, Air France-KLM indicated that the offer was contingent on prior agreement with the trade unions representative of the majority of the various categories of Alitalia employees (ground staff, flight crews); this agreement concerned the implementation of the Alitalia restructuring plan and its related severance measures," said the Groups in its statement.

"Air France-KLM know from experience that in the airline industry no restructuring plan has ever succeeded if it was not first agreed by employees. Consequently, Air France-KLM has always considered that the Alitalia industrial plan would have no chance of success unless it had the backing of the trade unions representing Alitalia's workforce.

After several lengthy negotiation sessions, the trade unions formulated a new proposal corresponding to a totally different framework to the one in which Air France-KLM had restricted itself since Autumn 2007.

In formal terms, Air France-KLM was thus regretfully forced to accept that there was no longer any basis for further negotiations. This is because Air France-KLM has no mandate from its Board of Directors to follow up this new proposal. As regards content, the new proposal, which would involve retaining a number of activities generating large scale-losses within the Alitalia group, seems incompatible with the target of a rapid return to profit."

Chairman Spinetta said: "I regretfully acknowledge the breakdown in negotiations, which is none of our doing. This is a project I have profoundly believed in and continue to do so, because it would have ensured Alitalia a rapid return to profitable growth”.

Oman Air gives mobiles green light

Oman Air has joined a growing number of Middle East airlines planning to offer OnAir's inflight passenger communications services, which includes mobile phone and BlackBerry usage, as well as Internet access.

From 2009, Oman Air passengers will be able to use their mobile phones and BlackBerry-type devices to send and receive text messages, emails including attachments, and to make and receive mobile phone calls during flights.

They will also be able to use laptops and the seat-back inflight entertainment screen to access the Internet and use webmail and instant messaging. The OnAir service is based on Inmarsat's SwiftBroadband.

OnAir's service will be fitted on the seven new Airbus A330 aircraft to be delivered to Oman Air in 2009. The aircraft will fly on long-haul routes from Oman to both Asia and Europe.

Ziad Karim Al Haremi, Chief Executive Officer of Oman Air, said, "Oman Air has consistently contributed to the technological advance of commercial aviation. We always aim to improve our services and as we introduce our long-haul routes, we are very pleased to be one of the first airlines to offer the full range of passenger communications options."

Mobile OnAir will allow unlimited text messages and emails including attachments to be received and sent, and will allow up to 12 simultaneous voice calls. A central feature of the service is the crew's ability to turn it off at any time, or switch it to 'silent' - text and email only - mode, enabling the airline to customize the services to its passengers' preferences. For example, airlines could turn off the voice element, or even the whole service, during quiet times.