Alitalia saved

After protracted negotiations Etihad Airways will buy almost half of loss-making Alitalia and invest €560m into the Italian airline in a deal that was finally signed last Friday (8 August).  How the arrangement of Italian day-to-day management, airline skills acquired from the UK and led by an Australian will work out remains to be seen.  Etihad's policy is to be involved with a number of carriers, spreading its resources thinly according to some. 

Etihad has a 29.21% stake in Air Berlin, 2.9% Aer Lingus, 40% Air Seychelles, 24% Jet Airways of India, 10% Virgin Australia, and 49% in the Serbian national airline JAT/Air Serbia.  It owns 33.3% of the Swiss carrier Darwin Airline now rebranded as Etihad Regional. 

The two airlines have been in talks for nearly a year, but a final agreement was held up by negotiations over job cuts and debt restructuring.  The deal is subject to approval by European authorities and also includes Heathrow slots.

"After much effort, a year of work and many late nights, we did it," said Gabriele Del Torchio, Chief Executive of Alitalia.  Without a deal, Alitalia's planes may have been grounded within weeks.

Existing Alitalia shareholders, including Poste Italiane, will constitute a so-called "mid-company" controlling 51% of the restructured airline.  www.alitalia.com

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