As the drama that is Alitalia continues to unfold, it seems Etihad is sniffing around the airline.
The airlines are reported to be in talks regarding ownership and cash required to be injected, with rumors of 30% to 49% ownership of Alitalia.
The airline has been struggling to reach its funding target as Air France-KLM were not prepared to hand over any more money to the Alitia, and other shareholders in the airline were equally cautious
This – combined with the attack of the low cost carriers eating into Alitalia’s traditional markets has left the airline blindsided.
At the last deadline to round up funding the airline had managed to secure €173 million of the €300 million required. Should Etihad choose to invest, this could shore up its capital in the airline.
However, any injection will require the airline to restructure – meaning that there will be job losses – already noted at 1,900 staff members who would be at risk in an effort to save €295 million.
Etihad’s move, as well as strategy could be what Alitalia needs to survive. But yet, I can’t help but think of SwissAir, who collapsed with a similar “Hunter” Strategy .
Too many echos of the past as Etihad continues to build up stakes in airlines. Unless Etihad can leverage that stake to drive a more efficient airline, I have a nasty feeling in a few years Alitalia will be back in the news…. again.
