Etihad to invest $413m into Italy’s Alitalia- report

Abu Dhabi carrier said to be building on ‘equity alliance’ with major investment in Rome-based airline
Etihad to invest $413m into Italy’s Alitalia- report
By Daniel Shane
Thu 19 Dec 2013 11:09 AM

Abu Dhabi’s Etihad Airways will invest €300m ($413m) into Italy’s Alitalia, three sources familiar with the plan told the Bloomberg.

According to the news agency, negotiations between the two carriers are at an advanced stage and the deal would make the Gulf airline the top investor in Alitalia.

A final decision has not yet been reached and it is understood that Alitalia is also searching out other potential partners.

Officials could meet in Rome on Thursday to close the deal, one of the sources told Bloomberg.

The Gulf airline, which owns sizeable stakes in a number of other carriers including Air Serbia, Air Berlin, Air Seychelles, Jet Airways, Aer Lingus and Virgin Australia, has been provided with access to Alitalia’s accounts and is awaiting the outcome of a union agreement on redundancies.

The Rome-based carrier is seeking a new equity partner after shareholder Air France-KLM Group declined to take part in a capital increase.

An Etihad spokesperson declined to comment on the negotiations when contacted by Arabian Business.

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