Etihad Airways acquires majority stake in Alitalia’s FFP

Etihad Airways expands FFP partnership with Alitalia
Etihad Airways expands FFP partnership with Alitalia

Etihad Airways recently acquired a majority stake (75%) in Alitalia Loyalty, the airline’s frequent flyer programme. Alitalia retains the remaining 25%.

Alitalia Loyalty will become part of Global Loyalty Company (GLC) that allows Etihad Airways and its partners to target the global loyalty market more effectively. GLC also consists of Etihad Airways’ Etihad Guest, airberlin’s topbonus and Jet Airways’ JetPrivilege programmes. Together, the FFP programmes have a total of 14 million members worldwide.

James Hogan, president and chief executive officer of Etihad Aviation Group, said: “The loyalty programme sector is a fast growing with higher margin business than the airline industry. This approach allows both Etihad Airways and Alitalia to gain more rewards, with opportunities to generate sustained profits from our loyalty programmes.”

Elaborating further Silvano Cassano, chief executive officer of Alitalia, said: “This development will enhance synergies between the two programmes. The investment is part of recapitalisation and restructuring of Alitalia, which provides the airline with a sound financial platform for future growth.”

MilleMiglia has 4.6 million existing members and more than 20,000 new members a month. The acquisition has been valued at Euro 112.5 m and is being financed through a cash investment by Etihad Airways.

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