Etihad Airways and Alitalia have confirmed they are a step closer to agreeing a deal that will see the Abu Dhabi carrier invest in the struggling Italian airline.
Etihad said it will forward a letter to Alitalia board members and stakeholders outlining the conditions and criteria for a proposed equity investment.
Upon confirmation of Alitalia’s acceptance of the terms of the deal, both airlines will proceed to “final documentation” in order to complete the transaction.
In February the airlines said they were entering the “final phase” of a due diligence process.
The potential deal, which could result in Etihad taking a 49% stake in Alitalia, would increase the Abu Dhabi airline's presence in Europe and provide the Italian carrier with a partner and extra funding.
Etihad hasn’t released any further details about the deal but in a TV interview Italy's transport minister said Etihad was ready to invest around 600m Euros in Alitalia.
In a statement, Etihad said the Italian government "looks favourably" at the partnership between the airlines.
"An equity investment in Alitalia will be beneficial not only for both airlines, but, more importantly, it will give more choice and broader travel opportunities to business and leisure travellers into and out of Italy," said chief executive of Etihad Airways, James Hogan.
Alitalia’s CEO Gabriele Del Torchio, said: “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.”
EtihadAirways.com
Alitalia.com