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Alitalia wavers on Milan
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February 11, 2000: 11:16 a.m. ET
Italian carrier stalls on airport shift, affirms KLM, Northwest partnership
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LONDON (CNNfn) - Alitalia shifted its position on a proposed move to Malpensa airport in Milan, saying it would postpone any legal action until after the government reached a definitive solution on a dispute over traffic.
Shares in Alitalia were suspended limit up Friday after the airline's announcement. The shares were quoted at 2.145 euros ($2.11), a rise of 9.94 percent from Thursday's close.
Alitalia said in a statement that the board had "unanimously agreed" to views expressed by its lawyers to hold back on "any action to protect the company's interest until there is a definitive solution for the split of traffic between Milan's airports."
It also said a board meeting had approved guidelines for the Italian carrier's accord with Dutch alliance partner KLM and U.S. partner Northwest Airlines, and had given a mandate to its managing director to finalize the deal.
Alitalia's business plan hinges on shifting some 450 flights from congested Linate airport to Milan's international new airport at Malpensa. But environmental concerns and complaints from other airlines that the move unfairly favored Alitalia has forced a halt to the process.
The confusion has endangered Alitalia's crucial alliance with KLM. Developing Malpensa into a true international hub is integral to the alliance and KLM has warned it will seek to renegotiate its contract with Alitalia within a few months if the Malpensa problem is not resolved soon.
Alitalia shares, long burdened by the Malpensa confusion, hit a 16-month low of 1.90 euros earlier this week after the Italian flag carrier announced its profit slumped to almost breakeven in 1999 and that it would introduce a tough cost-cutting plan. 
-- from staff and wire reports
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Alitalia
KLM
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