Etihad to Buy 49% Stake in Alitalia
Alitalia SpA, the Italian carrier bailed out by the government last year, said it has agreed on “principal terms” with Etihad Airways PJSC that will give the Middle Eastern airliner a 49 percent stake.
The two airlines will next complete final documents for a transaction, according to a joint statement today, and conclusion will depend on regulatory approval. No financial details of the possible investment were disclosed.
Alitalia had sought a new partner after Air France-KLM (AF) Group bowed out of a rescue brokered by the government last year. The airline has been unprofitable for years and is in the process of cutting thousands of jobs as its domestic market comes increasingly under attack from low-cost airliners and global carriers including Emirates, which services Milan.
Etihad’s investment will add another stake in an airline to the growing list assembled by Chief Executive Officer James Hogan, who is building alliances around the globe to help funnel more traffic through his hub in Abu Dhabi. The two airlines had announced several weeks ago that they were in talks.
Source: bloomberg
