Abu Dhabi's state-owned Etihad Airways said on Wednesday it had agreed principal terms and conditions to buy a 49 percent stake in Alitalia in a last-ditch attempt to save the loss-making Italian carrier.
The board of Italy's troubled airline Alitalia has voted to accept an offer by Etihad Airways to invest in the company, and said it would move quickly to conclude the tie-up, the company's chief executive said.
Abu Dhabi-based Etihad Airways is prepared to invest up to 1.25 billion euros ($1.7 billion) in Alitalia over the next four years under a possible tie-up between the two carriers, Italian Transport Minister Maurizio Lupi said.
Alitalia needs a few weeks to seal a deal with Etihad which could see the Abu Dhabi airline invest 560 million euros ($762 million) in its struggling Italian peer in return for hefty job cuts, Alitalia chief executive Gabriele del Torchio said.
The head of Alitalia expects around 2,200 jobs to go under a planned tie-up with Etihad Airways, he was quoted as saying by La Repubblica newspaper on Sunday.
"Etihad is inflexible on this (job cuts)," Gabriele Del Torch
Etihad Airways, the national airline of the UAE, and Alitalia, partner of Sky Team, have joined forces to support the ‘Made of Italians’ 2015 tourism program with attractive airfares.
Unveiled today in 14 Italian embas
Etihad Airways said on Sunday it would go ahead with a proposed investment in Alitalia after conditions for the deal were negotiated with the Italian carrier and its stakeholders.
"Upon confirmation by the board of Alitalia a
The Italian government, banks and Alitalia shareholders have agreed that talks should continue with Abu Dhabi-based airline Etihad over a potential link-up, a government statement said.
The statement, issued after a two-hour meeti
Italian airline Alitalia is considering creating a separate company to hive off its bad debts and appease Gulf-based suitor Etihad, Il Messaggero daily said on Saturday.
The plan was discussed at a meeting in Milan on Friday betwe
Etihad Airways, the national airline of the UAE, has signalled that it is ready to continue talks on a potential investment in Italy's troubled Alitalia but it refuses to budge on tough conditions on debt restructuring and job cuts, a source