Etihad confirms Alitalia acquisition
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Etihad Airways has confirmed that it will purchase a 49% equity stake in Alitalia.
The Italian national carrier’s board agreed to the deal earlier this month, despite concerns over job losses. And the “principal terms and conditions” of the transaction have now been approved by Etihad.
The Abu Dhabi-based airline said it will now look to finalise the transaction “as soon as possible”, although the investment is still subject to final regulatory approvals.
Italian media reports have suggested that the deal would include an initial investment of approximately EUR560 million (US$762m) and up to EUR1.25 billion of new investments in Alitalia over the next four years. However it is also expected to lead to the reduction of around 2,200 jobs.
Alitalia’s CEO, Gabriele Del Torchio, previously called the investment “an excellent outcome” for his airline.
The investment marks the latest stage in Etihad’s expansion in Europe. Last year the UAE national carrier acquired a 49% stake in Serbia’s national carrier, JatAirways, and has since rebranded it as Air Serbia. Etihad has also launched a Switzerland-based subsidiary, Etihad Regional, following a 34% investment in Darwin Airline, and holds a 29.2% stake in Germany’s airberlin and a 4.1% interest in Ireland’s Aer Lingus.
Outside Europe, Etihad holds stakes in Jet Airways, Air Seychelles and Virgin Australia.
Alitalia, which is a member of the SkyTeam alliance, currently operates 4,722 weekly flights to 103 destinations with a fleet of 132 aircraft.
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