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Alitalia says it will work out plans for capital increase at Sept. 7 board meeting

Alitalia says it will work out plans for capital increase at Sept. 7 board meeting

Alitalia, Italy's struggling national airline, said Thursday it will work out details of a planned capital increase at a board meeting on Sept. 7.
The increase would be carried out over the next few months, Alitalia said in a statement after a board meeting.
The airline, which has failed so far to find a buyer, also described its new business plan, for 2008-2010, as a "plan of survival/transition."
Alitalia said the new plan would include halting unprofitable flights, but it didn't say which ones. The plan would also emphasize "recouping efficiency and productivity by its human resources and fleet" and would try to better exploit the "natural market" of Rome's Leonardo da Vinci airport.
As part of its plan to "promptly" find a buyer, Alitalia said, the airline has chosen Citigroup as its financial adviser.
On Wednesday, Alitalia said it would raise money in a capital increase and cut jobs as part of a new business plan designed to stem heavy losses.
The airline, which loses close to euro2 million (US$2.7 million) a day, hasn't said exactly how much money it plans to raise with the capital increase.
A government auction to sell a controlling stake in the airline failed in July after bidders pulled out one-by-one, complaining the terms were too harsh.
The government wants to shed its 49.9 percent stake and has handed responsibility for finding a buyer to Alitalia's management.


Updated : 2021-07-27 15:09 GMT+08:00