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.
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.
Italy’s postal service agreed to participate in a capital increase for Alitalia SpA that is part of a rescue package brokered by the government to revive the airline pummeled by a shrinking business and years of losses.
Alitalia SpA secured a 500 million- euro ($677 million) rescue package from shareholders, banks and the state-owned postal service to avert a collapse of the airline that’s losing more than 1.5 million euros a day.
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.
Italian Prime Minister Enrico Letta is close to sealing a rescue package for Alitalia SpA that involves the national postal service taking a stake in the carrier, four people familiar with the matter said.
Telecom Italia SpA Chief Executive Officer Franco Bernabe plans to tender his resignation this week after losing the support of the carrier’s biggest shareholders, according to a person with knowledge of the matter.
Alitalia SpA needs a bigger capital injection than previously estimated, as management works to secure a package approaching half a billion euros ($676 million) to keep the airline afloat, trade union executives said.