Financial Times FT.com

Challenge to Alitalia air traffic agreement

By Guy Dinmore in Rome

Published: April 1 2008 18:43 | Last updated: April 1 2008 18:43

Several Italian airlines are challenging a confidential agreement on air traffic rights reached between lossmaking Alitalia and the national civil aviation authority, which industry and official sources allege was pushed through by the government to facilitate the takeover bid by Air France-KLM.

The agreement, details of which have not been made public, was signed on March 14, the same day that Air France-KLM made its binding offer for Alitalia. The takeover bid was accepted by the airline and the Italian finance ministry, which holds a 49.9 per cent stake.

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