Air France-KLM has written off its stake in struggling Alitalia

City A.M. Reporter
FOG CLOUDING the future of Alitalia deepened yesterday when Air France-KLM wrote off the value of its stake and told Italy it would ignore an emergency cash call for the battered airline unless “very strict conditions” were met.

Alexandre de Juniac, chief executive of the Franco-Dutch group, said he had been “offended and discouraged” by the conduct of talks to keep Alitalia afloat.

“We are not here to put money into a company that cannot last for the long term. We need a real, robust plan that will stay the course,” the former French finance ministry official told reporters.

Air France-KLM’s operating earnings for the third quarter rose 29 per cent to €634m (£537m) from a proforma level of €491m, despite revenue which grew just 0.4 per cent to €7.212bn.

Air France-KLM, which has announced 2,880 new job cuts, said unit costs fell 1.5 per cent on a constant currency and fuel basis.

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