Air France-KLM writes off Alitalia stake

Air France-KLM has written off the value of its 25 percent stake in Italy’s financially-troubled Alitalia.

In its latest results, the Franco-Dutch firm said it was taking a charge of 119 million euros against profits to cover that.

It also said it was only willing to invest further in the struggling Italian carrier under very strict conditions involving its medium- and long-haul networks and a very strong financial restructuring.

Alitalia – which is facing tough competition and has been losing money for over a decade – wants its shareholders to put up 300 million euros in emergency cash so it can keep operating and avoid bankruptcy.