Air France secures wet-leased E190 capacity

New binding offers for ITA Airways amid AF-KLM scepticism

Air France-KLM raises €2bn+ in share issuance

Air France-KLM has completed a share capital increase raising approximately EUR2.256 billion (USD2.35 billion) (of which EUR1.611 billion (USD1.68 billion) was in cash) following the issuance of 1.928 billion new shares with a par value of EUR1 (USD1.04) at a subscription price of EUR1.17 (USD1.22) per share.

According to a stock market release, the Air France/KLM Royal Dutch Airlines parent's shareholding structure has been revised as follows:

% of the capital post Right Issue vs Pre-issuance

• French State: - 28.6% vs 28.6%;
• Dutch State - 9.3% vs 9.3%;
• CMA CGM - 9.0% vs 0.0%;
• China Eastern Airlines (MU, Shanghai Hongqiao) - 4.7% vs 9.6%;
• Delta Air Lines (DL, Atlanta Hartsfield Jackson) - 2.9% vs 5.8%;
• Treasury stock - 0.05% vs 0.2%;
• Others - 45.5% vs 46.5%.

In terms of voting rights, the French and Dutch governments' positions have changed with the former controlling 28.5% (vs 28.1% pre-issuance) and the latter with 10.7% (vs 13.8%). China Eastern Airlines and Delta Air Lines...

Air France-KLM launches €2.26bn share issue

Air France-KLM has launched a capital increase to bolster its finances and repay more of the state aid it received during the pandemic, saying that now is the right time to seek shareholder support amid an invigorated air travel market, it said in a statement and prospectus released on May 24.

The rights issue for existing shareholders targets a gross amount of EUR2,255,645,459 euros (USD2.41 billion), with 1,927,902,102 new shares to be subscribed in cash, “by payment in cash or by offsetting receivables”, at a unit price of EUR1.17 (USD1.25) on the basis of three new shares for one existing share. It will run from May 27 to June 9, inclusive.

The issue is the Air France and KLM Royal Dutch Airlines parent's second in just over a year and was widely expected. It takes it closer to repaying Covid-era government support and meeting European Union conditions for taking part in future mergers and acquisitions - such as the imminent privatisation of ITA Airways (AZ, Rome Fiumicino).

“The company...

Two options on the table for Italy’s ITA Airways

The deadline for submitting binding offers for Alitalia heir ITA Airways (AZ, Rome Fiumicino) expired at midnight on Monday, May 23. However, as part of the bid widely seen as having the best chance, Lufthansa (LH, Frankfurt Int'l) has reportedly halved its interest to a 20% stake.

According to local media, insiders confirmed reports that emerged earlier this month, that two offers for ITA are on the table at Italy’s Ministry of Economy and Finance: a consortium made up of Lufthansa and shipping giant MSC, and US-based investment fund Certares, which is reportedly working with Air France-KLM and Delta Air Lines (DL, Atlanta Hartsfield Jackson).

A third interested party, low-cost-carrier investor Indigo Partners, another US fund, appears to have withdrawn, the reason reportedly being that European Union legislation requires that the majority shareholder of a European airline be based in Europe and Indigo had not managed to find a suitable partner.

In the privatisation process, it is expected that the government will retain a minority stake of...