Air France-KLM offers concessions in Alitalia talks

By Alberto Sisto and Jo Winterbottom

ROME/MILAN (Reuters) - Air France-KLM (AIRF.PA) on Tuesday promised a revised plan for cutting jobs at Alitalia AZPIa.MI as part of its takeover of the carrier, marking its first concession in talks with the labor unions.

Air France-KLM Chief Executive Officer Jean-Cyril Spinetta, meeting unions in Rome to win their blessing for the deal, also offered to extend talks beyond a March 31 deadline as demanded by the unions, a union official attending the meeting said.

But the Italian Treasury -- which owns a 49.9 percent stake in the carrier -- is opposed to prolonging the deadline, the official quoted Alitalia's chairman as telling the unions, leaving the fate of any extension of talks unclear.

Three major unions sounded a positive note after the meeting. The Cgil union, which had earlier criticized the deal, said it was in favor of continuing talks with the Franco-Dutch carrier while the Fit-Cisl union called it a "useful meeting."

"The concessions will allow for the start of talks," said Giuseppe Caronia, national secretary of the Uil Trasporti union.

Still, two pilot unions said they were unsatisfied by Air France-KLM's concessions.

More than a week after unveiling its deal to buy Alitalia, Air France-KLM is struggling to overcome resistance from unions, Milan's airport operator and politicians campaigning ahead of an April general election, where the deal has become a hot issue.

Air France-KLM had earlier said it wanted all obstacles to the deal resolved before March 31 or throw in the towel, but on Tuesday appeared to soften its stance with the offer to extend talks beyond that date.