On Thursday, Air France-KLM's quarterly results indicated that its ownership stake in beleaguered Italian airline Alitalia had been written off.
"As of October 14, 2013, the general meeting of shareholders of Alitalia has validated, within the framework of the restructuring of the company, the principle of an increase in capital amounting to 300 million euros ($413 million). Following ... this decision, Air France-KLM group has fully depreciated its Alitalia shares," Air France-KLM said in its quarterly results.
Air France-KLM has a 25% ownership stake in Alitalia. The decision to depreciate its stake in Alitalia came during calls for the Franco-Dutch airline to partner up with Alitalia. An impairment charge costing EUR119 million was listed in the third quarter. The impairment charge was a reflection of the Alitalia stake write-off.
Alitalia is fast approaching to declare bankruptcy. In October, Alitalia secured a financial rescue package of EUR500 million. EUR75 million of the amount came from Poste Italian, the state-owned post office.
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