Air France-KLM, Delta Air Lines and Virgin Atlantic are moving to create a new transatlantic joint venture triad that includes Air France-KLM acquiring a 31% stake in Virgin and Delta taking a 10% stake in Air France-KLM. The complex transactions, announced Thursday, would see Air France-KLM buy Virgin Group’s 31% stake in Virgin Atlantic for around GBP220m (US$287m), Air France-KLM said. Meanwhile, Delta, which owns 49% of Virgin Atlantic and has a transatlantic JV with the UK airline, plans to buy a 10% stake in Air France-KLM, at around E375m ($437m) and the 3 airlines will seek regulatory approval for a new transatlantic JV. Additionally, China Eastern Airlines will also take a 10% stake in Air France-KLM. <br/>
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Garuda Indonesia wants to amend conditions of its 2015 US$500m global sukuk issue after its financial performance failed to meet the issue's original terms. The carrier wants to amend conditions stating that its consolidated total equity shall not fall below $500m, and that its consolidated debt to equity ratio shall not exceed 3 times. The carrier also wants to change the definition of "consolidated total debt" to exclude references to "indebtedness under a finance or capital lease", and to waive any dissolution or breach of terms and conditions. Garuda recorded a net loss of $283.8m in the first half of the year, attributable to a $138.3m loss due to tax amnesty programme expense, and $145.5m to losses from operations. Net losses from operations amounted to $145.5m for the 6 months. <br/>
Binding offers to buy struggling Alitalia have to be submitted by Oct 2, 1 of 3 commissioners appointed by the state to manage the carrier told a national newspaper in a report published Thursday. "Monday we will make the tender public, with a request to submit binding offers. This phase will end Oct 2," Luigi Gubitosi, said in a report in la Republica. Gubitosi reiterated that the favoured option was to sell the airline in one block, rather than in separate pieces. Asked about losses of E2m (US$2.35m) per day and the low load factors troubling the airline, Gubitosi said the situation had improved and on long-haul flights the yield had gone up. <br/>