Air France, KLM may consider raising stake in Alitalia

Says deal between Italian airline, Etihad 'positive'

(ANSA) - Milan, June 26 - The chief executive officer of Air France-KLM said Thursday that the carrier may eventually consider increasing its investment in Alitalia. Alexandre de Juniac said that boosting its stake in code-share partner Alitalia is not a priority at the moment but that he will watch the present deal shaping up between the Italian airline and Etihad Airways of the United Arab Emirates, Bloomberg reported. Etihad is expected to invest as much as 560 million euros in the struggling Alitalia in exchange for a 49% stake.

The two airlines have confirmed the deal, pending regulatory approval and other steps, and de Juniac said Air France-KLM sees the arrangement as "positive". "We have always said that we could look at it with favor," de Juniac told French radio, according to Bloomberg. "We could consider an increase in our share, but it is not a priority at the moment".

Last fall, Air France-KLM considered boosting its then-25% share in Alitalia, but was not able to reach a deal with the Italian carrier on issues such the size of its debt and staffing levels. Since then, the Air France-KLM stake has dwindled to about 7% but it remains in an eight-year partnership with Alitalia signed in 2009.