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imageROME: Italy's troubled national carrier Alitalia needs a 300 million euro ($405.49 million) capital increase and a 200 million euro credit line from banks to secure its future, a trade union official said on Wednesday after a meeting with the company.

The capital increase is likely to be funded half from current shareholders and half from a public sector investor, the official said. The company will also not pay back a previous loan of 95 million euros from shareholders.

The official warned that Alitalia "risks default in a few days" if a solution is not found to keep the airline in business.

A spokesman for Franco-Dutch partner Air France-KLM, which currently holds a 25 percent stake in Alitalia, declined to comment on an imminent risk of default.

Copyright Reuters, 2013

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