Air France-KLM’s plans for the ailing Italian carrier include a cash injection of at least 750 million euros ($1.08 billion), while Air One, the Italian challenger, said it would pump in 1 billion euros through a capital increase for the state-controlled airline.
Air One also says it will spend 4.3 billion euros to upgrade the fleet.
Air France KLM’s says it will not add any more redundancies to Alitalia’s current plan.
The Franco-Dutch alliance plans to relaunch Alitalia as “a strong national flag carrier with world coverage.” It is also offering a share swap as well as a major aircraft upgrade.
The Air-France KLM team says it will then be able to rely “on three strong, complementary brands providing customers with an unparalleled network.”
Air France KLM confirms that it has made a non binding offer:
- to acquire 100% of the shares of Alitalia through an exchange offer
- to acquire 100% of Alitalia convertible bonds and
- to immediately inject at least 750 million euros into Alitalia through a capital increase, that will be open to all shareholders and be fully underwritten by Air France KLM.
A large part of this investment will be used to support a huge relaunch program with cabin reconfiguration at the top of in flight products (seats, interior design, entertainment,...) and ground services to restore Alitalia’s international image as a major airline and to convey the Italian flag and values all over the world.
Air France KLM also says will support Alitalia in restoring and recovering its natural position and market share.
In addition, Alitalia’s fleet renewal is Air France KLM’s top priority and the Group has assessed that it will proceed with the full renewal of the MD80 short/medium-haul fleet and the B767 long-haul fleet. After the recovery phase, further investments will ensure the growth of the fleet, and enable Alitalia to expand its network from a healthy position.