Financial reprieve for Alitalia

Financial reprieve for Alitalia

A capital increase of at least €100 million has been approved to keep loss-making Alitalia afloat.

The Itaalian carrier called on its shareholders and creditors to keep the company going until negotiations are resolved that could lead to a takeover.

Analysts described the amount, half what officials had earlier indicated was needed, as just a breath of oxygen that would give the airline more time to work out a possible takeover by Air France-KLM, its largest shareholder with a 25% holding, the Financial Times reported.

Alitalia reported first-half losses of €294 million, up from €201 million in the same period last year.

Italy’s transport minister Maurizio Lupi, who met French government officials in Paris, said the government held “no prejudice” against a possible deal with Air France-KLM.

But he said certain conditions had to be verified, including jobs and strategy – meaning the use of Rome’s Fiumicino airport as a future hub.

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