Air France-KLM rejects increasing capital in Alitalia

by 
14.11.2013 - 13:44

Air France-KLM rejects increasing capital in Alitalia 
2013-11-14 13:35:11  

     THE HAGUE, Nov. 14 (Xinhua) -- Franco-Dutch airline Air France-KLM on Thursday confirmed its commitment to remain a partner of Italian airline Alitalia, but announced it would not be part of a proposed capital increase.

     The board of Alitalia on Wednesday approved a revised business plan, including severe cost cuts to make the airline more profitable. Part of the plan is an extension to Nov. 27 of a Friday deadline for shareholders to subscribe to a 300 million euro (402.7 million U.S. dollars) capital increase needed to boost its coffers.

     But Air France-KLM, which currently holds a 25 percent stake in Alitalia, on Thursday said it would not participate. This means the Franco-Dutch company's share in Alitalia would be reduced.

     "Even if the industrial component of the new plan presented yesterday by Alitalia is a step in the right direction and is receiving Air France-KLM's full support, the necessary financial restructuring measures are still not yet met," Air France-KLM said in a statement.

     "After the capital increase is completed, we intend to ... keep a strong relationship between the airlines through Air France-KLM's stake in Alitalia," they added.  Enditem