Alitalia has ratified its SkyTeam alliance agreement with Air France and Delta Air Lines. The three chief executives signed a memorandum of understanding (MoU) last week and expect to finalise a ten-year agreement by the end of July.
The agreement will entail rationalisation of the Italian-French market with Milan Malpensa, Rome Fiumicino and Paris Charles de Gaulle becoming the European hubs, and will initially involve code shares and frequent flyer programme harmonisation. A limited equity exchange is on the cards, and, in the long term, a full Alitalia/Air France merger is not being ruled out. Alitalia estimates the deal will be worth L200 billion ($87 million) annually within three years.
Source: Flight International
