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FRANCE

Alitalia plans to scrap deal with Air France-KLM

Alitalia said on Tuesday it will not be renewing a partnership deal with Air France-KLM when it expires in 2017 because it is "no-longer beneficial."

Alitalia plans to scrap deal with Air France-KLM
Alitalia said on Tuesday it will not be renewing a partnership deal with Air France-KLM when it expires in 2017. Photo: Vincenzo Pinto/AFP

Alitalia, which was rescued by Etihad Airways in a merger deal at the end of last year, said the original agreements concluded in 2009 and 2010 were done “under very different economic circumstances.”

“These agreements are no longer beneficial, either commercially or strategically, to the new Alitalia and its ambitious turnaround plan,” Alitalia chief executive Silvano Cassano said in a statement.

“They were negotiated when Alitalia was in a very different position, with the result that the agreements in their current forms favour the other party,” he said.

Cassano said Alitalia remained open to further discussion on finding “a mutually acceptable solution” but the contracts would not be renewed under the present terms.

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POLITICS

France vows to block EU-South America trade deal in current form

France has vowed to prevent a trade deal between the European Union and the South American Mercosur bloc from being signed with its current terms, as the country is rocked by farmer protests.

France vows to block EU-South America trade deal in current form

The trade deal, which would include agricultural powers Argentina and Brazil, is among a litany of complaints by farmers in France and elsewhere in Europe who have been blocking roads to demand better conditions for their sector.

They fear it would further depress their produce prices amid increased competition from exporting nations that are not bound by strict and costly EU environmental laws.

READ ALSO Should I cancel my trip to France because of farmers’ protests?

“This Mercosur deal, as it stands, is not good for our farmers. It cannot be signed as is, it won’t be signed as is,” Economy Minister Bruno Le Maire told broadcasters CNews and Europe 1.

The European Commission acknowledged on Tuesday that the conditions to conclude the deal with Mercosur, which also includes Paraguay and Uruguay, “are not quite there yet”.

The talks, however, are continuing, the commission said.

READ ALSO 5 minutes to understand French farmer protests

President Emmanuel Macron said Tuesday that France opposes the deal because it “doesn’t make Mercosur farmers and companies abide by the same rules as ours”.

The EU and the South American nations have been negotiating since 2000.

The contours of a deal were agreed in 2019, but a final version still needs to be ratified.

The accord aims to cut import tariffs on – mostly European – industrial and pharmaceutical goods, and on agricultural products.

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