Alitalia’s (2nd) (Rome) first half loss increased to over $398 million. The struggling Italian carrier is proposing a capital infusion of $135 million according to this report by Reuters which would only delay the ultimate fate. The Air France-KLM Group which controls 25 percent of the shares, voted against the capital increase. AF-KL has also asked for additional information about AZ before investing any more money. AF-KL has their own financial challenges.
The capital infusion does not solve the underlying financial problems of high-cost Alitalia. As we asked before, is Alitalia headed towards another bankruptcy? This time, their previous savior, the Air France-KLM Group, given this vote, is less likely to help Italian flag carrier given their own financial condition.
Meanwhile there are reported interested parties in China and Russia that could be interested in Alitalia. This Italian opera is not over.
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Copyright Photo: Rolf Wallner/AirlinersGallery.com. Airbus A321-112 EI-IXG (msn 516) approaches the runway at London (Heathrow).