Alitalia says enough cash on hand to operate short-term – to meet with unions
10 Apr 2008
Ever since the Air France-KLM Group adopted a tough stance with struggling carrier Alitalia's unions and walked out on talks aimed at a possible merger with itself, the Italian flag carrier has been looking to project a positive outlook on a somewhat desperate situation. In a statement issued late Tuesday it said that its financial situation allowed it to continue operations in the "short term."
However, it reiterated the need for "substantial financial support," which has been asked for, both in its budget as well as in the takeover proposal put forward by Air France-KLM.
"Only by means of such support will it be possible to regain the required confidence to pursue the company's business plan and hence to confirm continuity of operations," the carrier said following a board meeting.
Meanwhile, the airline disclosed its financial situation stating that it had €170 million ($267.4 million) in cash-to-hand and short-term financial credits. This figure includes the €79 million obtained from the sale of Air France-KLM shares but excludes fiscal credit of €69 million it received on 2 April.
It also said that it "took positive note" of a press release issued by AF-KLM earlier this week, which said that it "is now up to Alitalia, its employees and unions representing staff to say how they view the future of their airline." It implied that the statement left the door open for new negotiations.
The carrier's management is due to meet union representatives today.
Air France-KLM's proposal had included a €1 billion re-capitalization plan through an offering of new shares to existing shareholders after the takeover.
