Talks between Air France-KLM and nine Italian trade unions representing Alitalia employees have hit troubled waters as the Franco-Dutch airline revealed plans to cut 1,600 jobs to try and turn the stricken carrier around.

Despite negotiations stalling, Air France CEO Jean-Cyril Spinetta has said he remains ‘determined to contribute to Alitalia’s long-term recovery’ – but there is a possibility that despite the Italian government approving the takeover bid, the deal could still founder if unions do not agree to the plan by 31 March.

Spinetta told union representatives in the meeting: “The aim of the Air France-KLM group is not to take over Alitalia, but to see whether it is possible to build a major global airline group together with the entire Alitalia workforce.”

But today it was revealed the strategy to turn around the loss-making carrier involves downsizing the fleet, reorganising flight schedules and ‘some 1,600 job cuts, for which state severance schemes will be implemented.’

It is clear Spinetta thinks the remaining workforce must be on-side for this airline consolidation to work though – “No service business can possibly succeed without the commitment of all its personnel,” he said. “With your contribution, Alitalia will once again become profitable.”

In an increasingly competitive global aviation market, he said there was the “need to build tomorrow’s air transport leaders in Europe, thereby safeguarding jobs” – implying that other jobs were being saved through some blooding of the whole outfit.

Today (19 March) he called for ‘clear thinking,’ but the unions look distinctly unimpressed and a statement from Alitalia said a further meeting between their representatives and Air France, will be set for some time next week.

Meanwhile union will convene tomorrow morning, and Alitalia’s board of directors will meet in the afternoon.