Air France-KLM this week completed its purchase of a 25 percent stake in Italian flag carrier Alitalia "through the subscription to a reserved capital increase for an amount of some €323 million."
The completion of the deal follows a more than a year of stops and starts in various efforts to take over all or some of the Italian airline.
Air France-KLM in April last year pulled a proposal to acquire Alitalia outright amid crumbling negotiations
(BTNonline, April 22, 2008). However, Alitalia and Air France-KLM in January said they "reached an agreement to launch a new strategic partnership, cemented by Air France-KLM taking a minority stake in Alitalia." Alitalia in January noted that through "network optimization and revenue management" synergies in the next three years "should amount to some €720 million for Alitalia."
Air France-KLM said in a statement this week said, "This strengthened partnership cemented by Air France-KLM's minority stake in Alitalia gives Air France-KLM greater access to the Italian market thanks to Alitalia, which, following its acquisition of Air One, has reinforced its position on the domestic market."