Transport Airlines

Alitalia to Get a Controversial, Last-Minute Cash Injection

Jan 13, 2014 4:00 am

Skift Take

A little lesson out there for everyone: When Air France thinks you’re an investment in a much too complicated set of circumstances, you’re a bad investment.

— Jason Clampet

Free Report: The State of Student Travel

Italy’s flagship carrier Alitalia is expected to win shareholder approval on Monday for a €300m (£250m) cash injection in a latest bail-out guaranteed to trigger complaints from rival airlines.

A meeting of Alitalia’s 22 shareholders is likely to vote through the latest rescue, made all the more controversial after the Italian government corralled the state-owned post office, Poste Italiane, to stump up around €75m for the debt-laden carrier.

The involvement of Poste Italiane has already triggered a complaint from the European Low Fare Airlines Association (ELFAA), a Brussels-based group whose members include Ryanair, easyJet and Flybe.

ELFAA maintains that Poste Italiane’s investment is a clear breach of European state aid rules.

The bail-out is also expected to see a fundamental restructuring of the shareholder base after Air France-KLM refused to participate in the latest rescue of Alitalia, which has more than €1bn debts.

Air France-KLM said it would not inject more cash unless there were big changes to operations and strategy.

Today’s bail-out is likely to see Italian banking group Intesa Sanpaolo emerge with about 23pc of the company, Poste Italiane take 18pc and Unicredit about 11pc.

Tags:

Next Up

More on Skift

B2B Travel Startups Need to Show Personality on Social Media
Skift Forum Video: HotelTonight’s CEO on Curation in Travel
Best Travel Ads This Week: Travel Brands Go Indie
Free Webinar: How To Effectively Personalize Marketing Across Travel Sectors