MILAN — The Alitalia board on Friday approved a $400 million capital increase as part of a rescue plan for the struggling flagship airline.
The capital increase includes up to $101 million from the Italian Postal Services, and the rest from the consortium that runs Alitalia and a bridge loan from banks.
Italian Premier Enrico Letta said in a statement Thursday that the entrance of Poste Italiane SpA into the shareholder structure must include an overhaul of the business plan.
On top of the capital increase, banks Intesa San Paolo and Unicredit are preparing a $271 million line of credit. Full story for BostonGlobe.com subscribers.