Etihad Airways will take up a 49% stake in Alitalia, giving the Gulf carrier a strategic foothold in the European market.
In a statement issued to the media, Etihad said that both airlines had agreed to the principal terms and conditions of Etihad's equity stake in the Italian airline and would "move to finalise the transactional documents, that will include the agreed upon conditions, as soon as possible."
Italy's transport minister has previously said that Etihad is prepared to invest up to €1.25 billion (A$1.82 billion) over the next four years to turn around the troubled airline.
Alitalia has been unprofitable for years and only last year received a €500 million (A$727 million) bailout from the Italian government.
Earlier this month Alitalia CEO Gabriele Del Torchio pegged Etihad's proposed equity investment at €560 million (A$814 million) for 49% but said this would require the elimination of around 2,200 jobs, or 15 percent of Alitalia's work force.
The investment is subject to final approval from European regulators but is certain to attract renewed criticism from rival European carriers such as Lufthansa.
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David Flynn is the Editor-in-Chief of Executive Traveller and a bit of a travel tragic with a weakness for good coffee, shopping and lychee martinis.
Qantas - Qantas Frequent Flyer
17 Aug 2012
Total posts 2199
Qantas - Qantas Frequent Flyer
18 May 2011
Total posts 233
Alitalia - where money goes to die
28 Oct 2011
Total posts 645
hmmm...A 'virus'(etihad) enters the 'host' (alitalia etc...)... From within, it then becomes easier for that 'virus' to 'control' the 'host' ;-)
21 Apr 2012
Total posts 3006
I'd like to see how Etihad deals with the unions....
28 Oct 2011
Total posts 645
money talks ;-)
Singapore Airlines - KrisFlyer
26 Jul 2012
Total posts 40
The way EY would "deal" with unions would be the same as they would "deal" with them at VA, NZ and Air Berlin etc!!!!!!!!!!!!!!
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