Air France-KLM gets tough with Alitalia

Dino D'Amore
By Dino D'Amore November 4, 2013 11:28

Air France-KLM gets tough with Alitalia

Air France-KLM, which owns 25% of Alitalia, is demanding strict conditions to any cash injection given to the company. Although Air France-KLM has approved a €300 million capital increase, it is not obliged to participate. Before giving any help, Air France-KLM wants Alitalia to make 5,000 job cuts, the removal of Alitalia’s board of directors and a restructuring of its €1 billion debt to reduce it by up to 80%.

Alitalia is reported to be baulking at these demands, although neither party has commented publically. The reports are that this cash injection is a prelude to Air France-KLM taking more control of Alitalia. Air France has already written off the value of its stake in Alitalia.

Dino D'Amore
By Dino D'Amore November 4, 2013 11:28
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