Reuters
Italy's Volare airline gets fresh cash to expand
Tuesday March 9, 2:40 pm ET


MILAN, March 9 (Reuters) - Italian airline Volare completed an 80 million euro capital increase on Tuesday to buy new planes, set up new routes and take on European low-cost carriers like Ryanair and easyJet.
In a statement, Volare said it had also renegotiated more than 120 million euros of debt to suppliers, lengthening their maturities to the mid-term.
"The new resources will allow the Volare Group to expand our volareweb.com low-cost line in Europe, especially in France, Spain and Eastern countries, with the aim of becoming the third biggest low-cost airline in the European Union," Volare said.
It said it would also build its charter business, operated under the Volare and Air Europe names.
Volare has taken on both low-cost and regular airlines in Italy, including the lucrative Milan-Rome route dominated by struggling flag carrier Alitalia.
It also has its eyes abroad, showing interest in the planned privatisation of Bulgaria's national airline Bulgaria Air.
Volare said 40 million euros of its capital increase had been injected by a group of international investors led by Argentine businessman Eduardo Eurnekian. The other half was supplied by institutions including Interbanca bank.