Alitalia (2nd) (Rome) continues to bleed money. According to this report by Reuters, the flag carrier needs almost $680 million to avoid bankruptcy again. Its main fuel supplier has threatened to stop making fuel deliveries this weekend.
The Italian government, which considers the failing airline a “strategic asset”, has now structured a deal where state owned Poste Italiane through Mistral Air (Rome) would provide a partial capital float in the form of a capital increase to keep the passenger airline flying.
Alitalia continues to lose money and has not been profitable since 2002. The causes of continued losses has not been fully addressed due to political meddling.
The government now wants “radical change” at the airline and wants the current stockholders to share in the capital increase.
Stockholders Air France (Paris) and KLM Royal Dutch Airlines (Amsterdam), which control 25 percent of the shares, has mainly been mum of the recent government calls for action and has continued to ask for more financial information.
The Italian government would like Air France-KLM to raise their stakes in Alitalia but this is unlikely to happen since Air France is restructuring itself.
Can Alitalia survive? Will any of the Gulf carriers (Etihad Airways?) come to the rescue? Will any of the other SkyTeam partners help? Stay tuned.
Read the full report: CLICK HERE
Top Copyright Photo: Ken Petersen/AirlinersGallery.com. Up-close runway action of Alitalia’s Boeing 767-35H ER EI-DBP (msn 26389) in the SkyTeam colors at New York (JFK).
Bottom Copyright Photo: Andi Hiltl/AirlinersGallery.com. Mistral Air’s Boeing 737-348 EI-BUE (msn 23810) prepares to land at Zurich.