Air France interested in Alitalia again

Air France-KLM is reportedly interested in taking part in Alitalia’s privatization yet again, despite its failed attempt at acquiring the Italian national airline this past spring. The Franco-Dutch giant-currently Europe’s largest airline-now seems to have embraced a new strategy in terms of its dealings with Alitalia. Air France will likely seek to buy a minority stake in a revamped Italian airline, which will be owned by 16 Italian investors. The fact that Silvio Berlusconi’s government has now formally realized the necessity of convincing a major foreign airline to get on board and partner up with a new and improved Alitalia probably went a long way in encouraging Air France-KLM to ponder a return to the negotiating table, despite the fact that its offer was snubbed by unions and Italian politicians less than five months ago.

The “new,” privately-owned Alitalia will be a much smaller company in comparison to the current national airline and major job cutbacks are all but certain to take place. This is part of the Italian government’s bid to get Alitalia out of the red, after nine straight years of deficits. According to a report in the Financial Times, the private sector investors who plan to resurrect the airline met with representatives of Air France-KLM earlier today and they described the meeting as “successful.”

Despite this positive news, Alitalia must still deal with very serious financial problems, including daily losses of €2 million and a massive debt. The carrier is currently flying on the fumes of a €300 million loan.

Thank you to the Financial Times for the initial report.

www.airfrance.com