PARIS - Air France-KLM said Monday it would submit a formal offer for Alitalia on March 14 as it seeks to take control of the struggling Italian airline after long-running and politically sensitive talks.
A statement from Air France-KLM, issued after a board meeting, said the offer would come with "a certain number of conditions ... notably a commitment from labour organisations."
"The entry of Alitalia into Air France-KLM will allow the company to cement its position as the leading European airline and also allow the Italian carrier to recover its position as the leading Italian airline," the Franco-Dutch group said in a statement.
Following months of twists, Alitalia in January opened exclusive talks with Air France-KLM to reach an accord on the sale of the government's 49.9 percent stake in the chronically loss-making Italian carrier.
Outgoing Prime Minister Romano Prodi has championed the sale but the outcome was clouded when his government collapsed shortly afterwards and new elections were called for April.
It was already opposed by many politicians, especially on the right, and former premier Silvio Berlusconi has raised questions about the sale of valuable state owned assets as the country prepares to vote.
The government has been trying for more than a year to sell Alitalia, reported to be losing around one million euros (1.5 million dollars) a day, but there have been continuous delays.
A tender last year that included Italy's Air One but not Air France, which already owns two percent of Alitalia, collapsed in July when all credible buyers pulled out.
Italian unions have said they oppose any sizeable lay-offs that could result from the airline's subsequent restructuring.
The final decision on Alitalia's future will rest on the government elected at the April polls.
clp/jmi/bmm
03/10/2008 18:50 GMT