Alitalia’s (2nd) (Rome) board of directors yesterday approved a revised business plan, promising “severe cost cuts” to make the Italian airline more profitable but did not include specifics according to this report by Reuters.
Air France-KLM Group, which owns 25 percent of the Italian carrier, voted against the plan but it did not address the long-term debt issue.
Alitalia (2nd) (Rome) received good news yesterday (October 11) when its board of directors (including Air France-KLM) approved a capital increase as part of the Italian government’s sponsored 500 million euro bailout plan according to this report by Reuters. However with the airline losing an estimated 10 million euros a day, this amount will be exhausted in the next two months. Clearly the airline needs another financial overhaul to reduce costs and increase revenue. The Italian government has also called for Alitalia to join an alliance.