Air France-KLM denies demand Alitalia cut 5,000 jobs
Report says layoffs at Italian carrier linked to capital funds04 November, 14:12
However, French-Dutch group has made clear that it must see major reorganization at Alitalia before it participates in a capital injection.
News article published on Sunday suggested that as a condition of its participation in the capital increase, the Air France-KLM group was demanding a debt restructuring and 5,000 job cuts.
Meanwhile, a former industry minister said he would "bet a coffee" that the group will continue to work with Alitalia.
But if it doesn't, a replacement partner will be found, Corrado Passera told Radio 24. Last month Alitalia shareholders approved an emergency 300-million-euro capital hike to pull the airline from the brink of bankruptcy.
The State-owned post office, Poste Italiane, pledged to buy up to 75 million euros in any unsubscribed shares in the capital increase.
Italian banks Intesa Sanpaolo and Unicredit also said they would take a stake worth up to 100 million euros.
The capital boost is part of a government-engineered 500-million-euro rescue package, which also includes 200 million euros in loans.
Last week Air France-KLM chief executive officer Alexandre de Juniac said his group has been "clear from the beginning" that it could still assist Alitalia - but only under "very strict conditions" including financial restructuring and changes to the airline's medium- and long-haul networks.
"We have always said that we are a serious and loyal partner of Alitalia, which means that we will help Alitalia but (under) very strict conditions," said de Juniac.