Alitalia joins transatlantic joint venture

ROME Mon Jul 5, 2010 9:48pm IST

An Alitalia plane passes an Air France aircraft on the tarmac of Fiumicino International Airport in Rome, September 25, 2008. REUTERS/Max Rossi/Files

An Alitalia plane passes an Air France aircraft on the tarmac of Fiumicino International Airport in Rome, September 25, 2008.

Credit: Reuters/Max Rossi/Files

Related Topics

ROME (Reuters) - Italian carrier Alitalia will join an Air France-KLM and Delta Air Lines joint venture that shares revenues and costs on transatlantic routes, giving the alliance access to Europe's third biggest market.

In a statement on Monday, the airlines said the addition of Alitalia means the venture represents about 26 pct of total transatlantic capacity with annual revenues of over $10 billion.

Alitalia, in which Air France-KLM holds a 25 percent stake, joins as of April 1 as part of an agreement running to until at least March 31, 2022.

Loss-making Alitalia went bankrupt in 2008 after years of struggling with strikes and inefficiencies and was relaunched as a private airline by Italian investors last year.

It had a difficult rebirth, grappling with low occupancy rates and flight delays that prompted a barrage of complaints. But the airline's performance in the first half of the year showed strong improvement from a year earlier, with revenues rising 10 percent, CEO Rocco Sabelli told a news conference.

He played down speculation that the airline might be forced to raise capital again in the coming months, saying there were no plans to do so. He also denied speculation that Air France-KLM planned to buy the Italian airline.

(Reporting by Deepa Babington; editing by Simon Jessop and Louise Heavens)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

BACK IN JAIL

REUTERS SHOWCASE

Modi Hurdle

Modi Hurdle

Appointment of Arvind Subramanian as chief economic adviser hits Modi hurdle.  Full Article 

USL Board

USL Board

Diageo bars United Breweries from appointing independent director at United Spirits.  Full Article 

Amazon in India

Amazon in India

Amazon to sell packaged food and beverages in India - Economic Times.  Full Article 

iOS 8 Issue

iOS 8 Issue

iOS 8 causing Bluetooth connectivity issues - Apple news blog  Full Article 

NYT Job Cut

NYT Job Cut

New York Times to cut jobs as new products disappoint  Full Article 

Factory Activity

Factory Activity

Factories expand at slowest pace this year in September  Full Article 

Monetary Policy

Monetary Policy

RBI not biased towards either raising or cutting rates - Rajan  Full Article 

Weak Demand

Weak Demand

Weak demand hits factory activity across Asia, Europe  Full Article 

Pimco Fund

Pimco Fund

Pimco Total Return Fund posts record $23.5 bln net outflow in Sept  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage