A European super airline moved a step closer this evening when the board of Alitalia gave the go-ahead to sign a deal with Air France and KLM that could eventually create Europe's largest airline.
"The board has mandated chief executive officer Francesco Mengozzi to sign a three-way deal with the CEOs of Air France and KLM in the next few hours," Alitalia said in a statement.
The loss-making Italian airline, which has a commercial partnership and a small cross-shareholding with Air France, is seen to have stepped up its efforts over the past few weeks to be part of any consolidations in the European airline sector.
The board of Air France is set to vote on a tie-up with Dutch carrier KLM later tonight. The two airlines have held alliance talks for the past year on a deal that could lead to the first cross-border merger of leading European airlines.
Should Alitalia be left out of any link-ups, its troubles would mount, analysts say. Sources close to the company have said the airline is set to curb 3,000 jobs as part of a do-or-die restructuring plan.
A three-way alliance would have a big impact on the shape of the international airline business and open the way to an eventual merger to create Europe's biggest airline.
"The entry of KLM into the SkyTeam alliance is the first brick in the construction of a great European group formed of Alitalia, Air France and KLM," Alitalia Chairman Mr Guiseppe Bonomi told reporters.