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Etihad completes letter outlining conditions for Alitalia stake

Source: ATW

Etihad Airways has set out the conditions and criteria for a proposed equity investment in Alitalia.

In a statement, Abu Dhabi-based Etihad said the Italian government regarded an Etihad-Alitalia partnership “favorably,” but did not reveal the size of equity stake proposed or any other terms of the transaction. Etihad had previously confirmed it was in discussions with Alitalia about a stake, but gave no further details. There has been speculation that Etihad could buy up to 49% of Alitalia.

“Upon confirmation by the board of Alitalia and its stakeholders of their acceptance of these terms, the airlines will proceed to final documentation in order to complete the proposed transaction, in line with EU and other regulatory requirements,” the statement said.

 “An equity investment in Alitalia will be beneficial not only for the both airlines, but more importantly, it will give more choice and broader travel opportunities to business and leisure travelers into and out of Italy,” Etihad president and CEO James Hogan said.

Alitalia CEO Gabriele Del Torchio added, “This is an excellent outcome for Alitalia. This investment will provide financial stability and confirms Alitalia’s key strategic role as an infrastructure player in the travel and tourism industry in Italy for long-term growth.”

Air France-KLM has a 25% stake in Alitalia. Etihad holds minority stakes in a number of airline partners and in May increased its stake in Virgin Australia to 21.24% from 19.9%, following approval from Australia’s Foreign Investment Review Board.

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