Alitalia says it expects to complete capital increase by Dec. 10

MILAN – Struggling airline Alitalia says it is well on the way to raising the 300 million euros ($408 million) it has asked from shareholders as part of a broader rescue plan.

It says Thursday that it has received commitments worth 173 million euros and expects to secure the full amount sought by Dec. 10, citing strong interest expressed.

Loss-making Alitalia urgently needs the money to stave off bankruptcy. The board in October approved the capital increase, including funds from the Italian Postal Service, along with a 200 million euros line of credit from two Italian banks.

Alitalia is still looking for a strategic partner after Air France KLM said it would not participate in the capital increase. Air France-KLM is a 25-per cent stakeholder.