Air France-KLM quiet on reports it will not come to Alitalia's aid

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Air France-KLM is not commenting on reports that it does not plan to participate in the capital increase at Alitalia, but its position could become clearer tomorrow following a supervisory board meeting at the struggling Italian carrier.

According to reports, Air France-KLM, which holds a 25% stake in Alitalia, does not intend to boost its shareholding through the €300 million ($401 million) capital increase announced in October.

An Air France-KLM spokeswoman declines to comment on the reports, but says an Alitalia board meeting is scheduled to take place tomorrow, after which the Franco-Dutch carrier may disclose its next move.

The capital increase was announced in mid-October as a lifeline to Alitalia amid mounting liquidity pressures. Existing shareholders were given a 30-day period in which to decide whether to exercise their share options.

Air France-KLM said at the time that any assistance would have “strict conditions attached”.

State-owned postal service Poste Italiane said last month that it would be ready to support up to €75 million of any unsubscribed shares.