Air France-klm May Help Alitalia Under Conditions: Report

An Alitalia plane passes an Air France plane on the tarmac of Charles de Gaulles International Airport in Roissy near Paris, January 8, 2013. REUTERS/Charles Platiau

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Rallying-Rally of France leg 2 classification

In such a scenario, we could supply (Alitalia’s) long-haul flights with passengers from Air France and KLM and they could do the same for us,” he said. De Juniac added that he could see Alitalia boosting its intercontinental routes where its own network might be weak. “Alitalia has strong points in Africa, Latin America and North America, where there is a strong Italian diaspora that can complement ours,” he told the paper. “Alitalia strengthens our commercial footprint pretty much everywhere. There are already many synergies.” NO CAPITAL INCREASE Analysts said Air France-KLM was unlikely to give up on Alitalia by letting it fail and opening Europe’s fourth-largest travel market to more competition. But Air France-KLM has set strict conditions on how the company should be restructured. Sources said last week that Air France had voted against a proposed capital increase at Alitalia of at least 100 million euros ($135 million). “Air France-KLM voted against the capital increase because the proposals on how to revive Alitalia were inexistent,” a banking source said. “The conditions have no chance of being met.” In the absence of other bidders, Italy’s bargaining power is seen as limited. The Alitalia board was informed last week of possible interest from China, Russia and the United Arab Emirates, but Benetton said there was nothing concrete. Alitalia’s board is due to meet again on Thursday to decide how to source the funding needed to keep the company afloat. Analysts said the airline required an injection of about 500 million euros to keep going and be able to invest in a strategy focused on the more lucrative long-haul market.