Air France is pulling out from Alitalia rescue deal for political reasons – Reports

Air France is pulling out of a deal that would save struggling Italian airline Alitalia for “political reasons”, Italian media reports.

The Ferrovie dello Statto (FS) rail group, which is handling the deal, had yesterday been expecting a formal commitment from the Air France-KLM board, which has been considering a part in the deal alongside Delta airlines.But no commitment came from Paris, FS said.

Il Sole 24 Ore reported that there were political reasons behind Air France’s sudden U-turn on the planned deal, amid an escalating diplomatic row between France and Italy.The apparent change of heart comes following the French ambassador to Rome’s recall to Paris this week amid growing tension between the two governments.

via The Local/Sole 24

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