© 2022 Business Travel News Ltd.

Article from BTNews 30 SEPTEMBER 2013

Alitalia woes

Not for the first time Alitalia seems to be in a mess.  It is 25% owned by Air France-KLM, in poor health itself, after helping the Italians out of bankruptcy in 2008.

Alitalia now faces a cash shortfall of some €400m and private Italian shareholders, who also took part in the previous bailout, become free to sell their shares when a lock-up expires in a month's time.

Air France-KLM is discussing whether to maintain its stake by participating in a capital increase.  They risk upsetting unions and the Dutch side of the company by raising its stake, or risk a Franco-Italian row by turning its back on its partner in the Skyteam alliance of airlines. It has deferred a decision, saying it needed more information about its Italian partner's finances.

Any extra investment could be a hard sell with the Franco-Dutch firm's shareholders and workers, as it is in the midst of cutting costs and jobs in a bid to bring down its own debts.  But the company will also be keen to protect the value of its existing investment and maintain access to Europe's fourth-largest travel market. www.alitalia.com

Index/Home page

OUR READERS' FINEST WORDS (All times and dates are GMT)

All comments are filtered to exclude any excesses but the Editor does not have to agree with what is being said. 100 words maximum