Alitalia’s board approves €500 million rescue plan
Almasalla Travel News –By Ashraf El gedawy – Alitalia s board of directors has approved a €500 million ($675.9 million) emergency rescue plan that will include a €300 million capital increase to be offered in stock options by shareholders and €200 million in new lines of credit according to a statement issued by the Rome-based airline yesterday.
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The Italian government will participate in the rescue in the form of postal service Poste
Italiane, which will guarantee €75 million aimed at helping save the airline. Alitalia has suffered heavy losses for some time.
Air France-KLM, which owns 25% of Alitalia, has not decided whether and how it will participate in the rescue. The Italian government would reportedly like AF-KLM to increase its shareholding, but no agreement has been reached.
More answers could come Oct. 14, when both Alitalia’s board and shareholders are planning a meeting.The Alitalia board said in a statement that the rescue plan “provides a solid basis for the future of the company.”
