Etihad proposes to take a 49% ownership of Alitalia

And so it comes to pass with Etihad to take a 49% today percent ownership of the Italian carrier Alitalia after protracted negotiations.

Etihad Boeing 777 – Image, GhettoIFE

Alitalia Airbus A321 – Image GhettoIFE

Etihad is proposing to take a 49% equity share of the Italian flag carrier, which is subject to stakeholder approval – as well as EU regulators.

Etihad seem happy about this, with James Hogan of the airline stating:

“We are delighted to be able to move forward with this process and look forward to the successful conclusion of the proposed transaction with Alitalia.

“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 travellers into and out of Italy.”

Alitalia seem happy too with Gabriele Del Torchio, noting

“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.”

No numbers for the size of the investment have been released as yet – nor the terms and conditions which could hit the Alitalia workforce hard and require major cuts.

Alitalia has not had a good time of it over the past few years as it has lurched from on fiscal disaster to another – to the point where Air France-KLM group wrote off their investment, not wishing to invest a penny more in the airline.

Certainly, the hope is that Etihads inolvoment will help boost the airline.

Whilst this grows Etihad “equity alliance” (an airline alliance that’s not an alliance), made up of