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Air France-KLM published record losses worth €1.55 billion Wednesday.

A new book regarding the airline’s safety record also added to the trouble seizing Europe’s biggest airline. The huge net loss for financial year 2009-2010 emerged as the Franco-Dutch carrier struggled with the financial crisis as well as the fallout from last year’s deadly accident. Decreasing air traffic, specifically for cargo, forced the company’s biggest loss since the merger of KLM and Air France last 2004. The most recent results came after €811 million in red ink last year.

“2009-10 will go on record as our ‘annus horribilis.’ The global economic crisis had a profound effect on the entire airline industry”, said chief executive Pierre-Henri Gourgeon.

He also mentioned the company’s struggle after June’s accident that saw chief executive Pierre-Henri Gourgeon bound from Rio to Paris plunge towards the Atlantic. All 228 passengers were killed.

Against that failure, the airline wrote off its dividend payment for financial year 2009-2010.

According to Gourgeon, the reorganization of the company’s cargo business started to bear fruit during the fourth quarter even though the fuel bill increased for the initial time in the year because of the 31% surge of jet fuel prices.

The perspective for the present year was “subject to the definitive cost of the closure of European airspace” because of the ash cloud spewed by a volcano in Iceland, he added.

The numbers were published after the airline’s safety record was scrutinized with “The Hidden Face of Air France”, which is journalist Fabrice Amedeo’s probe into the alleged shortcomings of Air France’s management culture.

Jean-Cyril, Chairman of Air France-KLM, affirmed the progress of merge with Alitalia Spa. Spinetta confirmed the official merging as a free choice between the parties. Alitalia had foreseen the 1,600 job retrenchment. This was composed of pilots, flight assistants, and ground staff.

Fintecna, share holder, will demand a stake raise in AZ Servici operations up to 80 pct. Alitalia formerly managed 51 pct of AZ Servici. Italy administration granted the trade union proposal of the two. Air France-KLM will manage Alitalia. People of Freedom political party contended that Air France-KLM terms and conditions were unjust.

POL has been one of the strong proponents for political, economic and even business issues. POL leader, Former Prime Minister Silvio Berlusconi remained silent on the issue. Northern League proponent Roberto Calderoli expressed his dismay over Alitalia’s lose-lose situation. Alitalia had been taken advantage at a lost cost.

Air France-KLM equated a 1= 160 ratio per share. Alitalia was worth 140 mln eur. Air France offered below initial negotiations on 0.35. Northern League coalition party commented on the unfavourable conditions set by Air France-KLM. The 1=160 share lowered Alitalia to unredeemed value. Alitalia suffered great loss on the bankruptcy at the expense of losing 1,600 jobs for its crew, staff and professionals.

Alitalia succumbed to the last resort and swallowed Air France-KLM conditions blindly. The Air France-KLM and Alitalia merger was faced with criticism from political parties running candidacy for the next election. Alitalia faced concerns on the vast job retrenchment. Air France-KLM continued to assert its own overhaul plan for Alitalia.