If Abu Dhabi-based carrier Etihad
invests in Alitalia and the result is not "friendly", then Air
France-KLM would be forced to reconsider its connection with the
Italian airline, the chief executive of Air France said Tuesday.
But Alexandre de Juniac added that if Etihad's investment
in Alitalia goes ahead and leads to a "friendly" operation, then
Air France-KLM can continue its own relationship with the
Rome-based airline.
"If the Etihad operation will not be friendly and there
will be hostility, we will consider whether to withdraw in a
significant way" from the Paris-based carrier's stake in
Alitalia, de Juniac said in response to a question at a
shareholder's meeting.
But, he said, if the relationship is cordial, then "a very
positive partnership" can follow, he said.
Etihad, flag-carrier of the United Arab Emirates, and
Alitalia are reportedly coming close to a deal that would see
Etihad invest as much as 500 million euros into cash-starved
Alitalia.
But Etihad has reportedly made strict demands on reducing
Alitalia's debt and workforce, which has slowed final
negotiations.
Struggling Alitalia put forward a restructuring plan last
fall that included measures to boost competitiveness but also
required an increased investment by stakeholders.
However, at that time, Air France-KLM decided that it would
not invest beyond its existing stake of about 25%, but said it
remained committed to its eight-year partnership with Alitalia
signed in 2009.
The conditions reportedly set by Etihad now are "similar,
in fact probably more stringent" than those put forward last
fall by Air France-KLM in exchange for a greater investment in
the Italian carrier, said de Juniac.
Last fall's government-engineered 500-million euro Alitalia
restructuring plan included a 300-million-euro capital increase
and 200 million euros in new lines of credit.
The French-Dutch carrier voted against the restructuring
plan, saying it did not go far enough to reduce Alitalia's debt.
Under the plan, Poste Italiane agreed to underwrite the
capital increase to the tune of 75 million euros, while Italian
banks Intesa Sanpaolo and UniCredit said they would put in up to
a maximum of 100 million euros.
That triggered complaints from rival European carriers that
have complained that amounts to State aid, an accusation that
the Italian government has denied.
As a result of the restructuring plan, Air France-KLM's
stake in Alitalia has slipped from its original 25% investment
to something closer to about 18% at present.
ALL RIGHTS RESERVED © Copyright ANSA
