Air France/KLM can't secure agreement from unions

Although Alitalia’s board of directors recently approved a plan by Air France/KLM to acquire the struggling Italian airline, the deal has fallen though, according to press reports from Europe. That’s because the $1.2 billion deal was contingent upon the buyers securing agreements from Alitalia’s labor unions – which they were unable to do, since Air France/KLM let it be known that under their ownership, Alitalia would have to shed a significant number of jobs. The Italian government, which owns just under 50 percent of Alitalia, is trying top figure out what to do next, since Air France/KLM was apparently the only interested bidder. Alitalia’s share price has fallen by more than half over the past year, and press reports said the struggling airline had only $280 million in cash on hand at the end of February.