Air France-KLM vies with Lufthansa for Alitalia

Two of Europe’s biggest airlines are competing to buy minority stakes in Alitalia-Linee Aeree Italiane SpA, as a planned relaunch of the near-bankrupt carrier edges closer. Alitalia held a board of directors meeting Friday to approve first-half results and formalise a request to seek bankruptcy protection.

As part of the board’s reorganization and approval to file for bankruptcy protection only the airline’s loss-making units will be left under bankruptcy protection and the rest will be acquired by a holding company composed of 16 Italian investors, according to the The Guardian.

Executives from Air France-KLM spoke with bankers at Alitalia adviser Intesa Sanpaolo SpA to discuss the investment, which would underpin a commercial partnership.

Lufthansa has not confirmed its interest in Alitalia, though Italy’s Transport and Public Works Minister Altero Matteoli said earlier this week that the airline could invest alongside 15 Italian businessmen who are putting up €1 billion ($1.47 billion) to finance the carrier.

Source : TheDeal.com