Air France-KLM close to Alitalia offer

Air France-KLM looked poised yesterday to make a key step towards buying struggling Italian carrier Alitalia, ending the 62-year independence of one of Italy's most distinctive global brands.

The Franco-Dutch airline's board met yesterday to make the final preparations for what was expected to be a long-awaited binding offer for the Italian national airline, whose future has become a hotly contested issue in upcoming Italian elections.

French newspaper La Tribune reported on its website that the board had agreed to make a formal offer but only subject to certain conditions targeted at strike-prone Alitalia's unions.

Air France-KLM wants the unions to guarantee in writing that they will not obstruct the redundancies envisaged as part of the takeover, the newspaper said without giving sources. Reports say 1,000 to 2,000 jobs could go at the troubled airline.

Air France-KLM was not available for comment. For decades Alitalia symbolised the post-war success of one of the world's most visited countries, as aircraft sporting its A-shaped logo transported Popes and divas around the globe.