French newspaper La Tribune reports that Air France KLM intends to buy Alitalia next year in a share swap transaction. However, the airline group’s poor results (see top) shows a dire need for Air France-KLM to return to profitability to boost its share price before such a deal can take place. The airline group already owns 25% of the Italian flag carrier and it has an option to buy more shares from 2013. Jean-Cyril Spinetta, chairman of Air France-KLM is also a board member of Alitalia and is reported to be pushing to take full control. Alitalia however may not be convinced by a share swap deal and could turn to more cash-rich European airline groups as possible buyers. But with a net loss of €69 million in 2011, albeit a 58.9% improvement from an €168 million deficit in 2010, finding a buyer will be tough in the current climate.
Air France-KLM to buy Alitalia?
