Air France-KLM releases first details on Alitalia takeover plans
Air France-KLM on Monday announced the first details of its plans for Alitalia if the French-Dutch company succeeds in getting control over the Italian airline.
In a statement released on Monday, Air France-KLM says it wants to invest a minimum of €750 million ($1.1 billion) in the Italian airline to improve its image. The majority of the investment would be used to buy new planes, renovate the interior of older aircraft and improve Alitalia’s service. The French-Dutch company did not give any details of the value of its takeover bid. Italy’s second largest airline AirOne and a group of Italian investors headed by the former chairman of Italy’s state broadcaster RAI have also made takeover bids for Alitalia.
Italy’s national carrier has been in financial distress for years. In the Q3 this year the company suffered a loss of €58 million ($83.7 million) before taxes. Successive Italian governments have shown little enthusiasm for relinquishing state control of the company - a moved deemed necessary by most experts to restore Alitalia’s financial viability. (m&c.com)
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