Alitalia may seek new financial partner

Italian Transport Minister Maurizio Lupi says the country’s cash-strapped national flag carrier, Alitalia, will seek a different partner in case its biggest shareholder, Air France-KLM, shuns a capital increase to help the airline stay afloat.

“For now the task is to set out a strong turnaround plan that envisages the entry of an international partner,” Lupi said in an interview with the Italian-language newspaper Corriere della Sera published on Friday.

Lupi said it was rightful for the Franco-Dutch firm to impose conditions, but the situation for battered Alitalia will be appalling if Air France-KLM ignores an emergency cash call.

“We want a partnership, we will find it and we will make sure it is strong,” he stated.

On Thursday, Air France-KLM wrote off the value of its stake in loss-making Alitalia, and announced that it would refuses to participate in the 300-million-euro capital increase unless “very strict conditions” were met.

Chief executive of the French-Dutch airline holding company, Alexandre de Juniac, said he had been “offended and discouraged” by the conduct of talks to keep Alitalia flying.

“We are not here to put money into a company that cannot last for the long term. We need a real, robust plan that will stay the course,” he said.

Air France-KLM’s 25 percent stake in Alitalia will fall automatically to 11 percent upon refusal to subscribe to the capital increase.

Alitalia nine-month loss has widened to 162 million euros (about $220 million) from 119 million euros (over $160 million) a year ago.

Italy’s loss-making national carrier, which last turned a profit in 2002, was rescued from bankruptcy in 2009 by a group of Italian businessmen and Air France-KLM after they paid a total debt of 1.17 billion euros ($1.58 billion) together.