Air France-KLM is planning to buy a 25% stake in Alitalia for €323m, subject to regulatory approval by Eurpean competition authorities.
Alitalia was finally re-born today after a €1.052 billion deal was struck with the Compagnia Aerea Italiana consortium.
Under the deal, the airline’s assets merged with those of rival Italian airline, Air One.
Air France-KLM chairman Jean-Cyril Spinetta said: “In view of the numerous challenges facing our sector, co-operation between airlines is becoming increasingly necessary, and this partnership represents an important milestone.
“We are happy with this reinforced partnership with Alitalia, which represents a compelling development opportunity for both our companies, and is in the interest of our shareholders, our customers and our employees.”
By years two or three, Air France-KLM expects to save around €90 million a year in synergies while Alitalia expects to generate synergies of around €280 million.
These will be achieved by optimising their networks and revenue management, extending the existing joint venture between Air France and Alitalia, and implementing a joint venture between Alitalia and KLM.
Alongside Air France-KLM, Alitalia’s other main shareholders include the Riva Group, IMSSI, Banca Intesa and the Benetton group.
By Bev Fearis
