Alitalia acquisition likely by Air France KLM in 2013

Italy’s flag carrier Alitalia is likely to be acquired by Air France KLM. According to the airline, Air France KLM is aiming to buy Alitalia through a share swap in 2013.

Media reports said that Air France KLM, however, will require a rebound of its share price in order to use its shares instead of cash to finance the acquisition.

Besides, Air France KLM will also have to swiftly execute its three-year “transformation plan” to bring the company back to profitability before considering Alitalia’s full acquisition.

Meanwhile, in another development Alitalia flights as well as those of OAO Aeroflot will lose their monopoly in the Russian and Italian markets as the two countries have agreed to allow in two more carriers to operate flight services.

As a result the number of flights to Rome and Milan from Moscow is likely to increase to 56 a week, up 60 percent, after the two new carriers, one each from Russia and Italy, start operating on the routes.