Alitalia SpA plans to postpone a capital increase as it seeks support from investors, with its biggest shareholder, Air France-KLM Group, still opposed to participating, two people familiar with the matter said.
Alitalia SpA Chief Executive Officer Gabriele Del Torchio is preparing a savings plan that includes about 2,000 job cuts as investors have until later this week to participate in a 300 million-euro ($402 million) capital increase, according to three people familiar with the matter.
At a Rome campaign rally before Italy’s national elections in 2008, Silvio Berlusconi told cheering supporters that a group of national entrepreneurs was willing to save Alitalia SpA “for the love of their country.”
Air France-KLM Group Chief Executive Officer Alexandre de Juniac said Alitalia SpA must commit to a deeper overhaul before the French carrier considers deeper ties that would help create a pan-European airline.
Air France-KLM Group is leaning against participating in a capital increase at Alitalia SpA as it seeks to preserve funds and the Italian airline shows no sign of a turnaround, three people familiar with the talks said.
The head of Italy’s postal service, which is helping bankroll an Alitalia SpA rescue, plans to meet his counterpart at Air France-KLM Group to sway the Italian carrier’s biggest investor to buy into a capital increase.
Air France-KLM Group and Deutsche Lufthansa AG, Europe’s two biggest airlines, are struggling to reach earnings goals as a stronger euro and sluggish economic growth wipe out the benefits of sweeping savings programs.