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Air France-KLM position for Alitalia capital increase remain unclear

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(Credit: Reuters) The image shows several airplanes of Italys's Alitalia.Alitalia
October 13
9:08 PM 2013

Alitalia shareholders would vote on Monday regarding the proposed capital increase, said a report from Reuters. The proposed increase in capital was valued EUR300 million to keep the near-bankrupt airline firm flying. However, the top investor of the company Air France-KLM's position regarding the capital increase was still uncertain.

The airline company was given a lifeline last Friday when its board members agreed on a government led EUR500 million bailout. The emergency plan included the capital increase and loans for the company that was worth EUR200 million.

According to Italian media reports over the weekend, Alitalia's shareholder Air France-KLM CEO Alexandre de Juniac said that his group would not participate in a cash call. De Juniac told Alitalia's chairman. However, when Reuters contacted de Juniac last Sunday, he denied having made any statements regarding the capital increase of Alitalia and said those reports were "fanciful". He also refused to make further comments regarding the position of Air France regarding the capital increase.

Air France-KLM owns a 25% stake in Italy's Alitalia. The company said that it would make a decision whether to take part in the cash call during the shareholder meeting on Monday, said a report from Reuters.

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