Etihad and Alitalia have agreed an investment deal that sees the Gulf carrier take a 49 per cent shareholding in the financially-troubled Italian airline.
The deal, which follows months of negotiations, means Etihad will invest €560 million, becoming a minority shareholder, with core Alitalia shareholders committing an additional €300 million.
Etihad said it aims to make Alitalia profitable by 2017.
The deal was signed in Rome by Etihad chief executive James Hogan and his Alitalia counterpart Gabriele Del Torchio.
(from left to right) Etihad Airways’ Chief Financial Officer, James Rigney; Alitalia Chairman, Roberto Colaninno; Etihad Airways’ President and Chief Executive Officer, James Hogan; and Alitalia Chief Executive Officer Gabriele Del Torchio mark the official signing of the investment deal in Rome, Italy.As part of its investment Etihad has agreed to buy five pairs of slots at London Heathrow for €60 million (£48 million). These will be "leased back to Alitalia on an arm's length basis".
It has also acquired a 75 per cent interest in Alitalia Loyalty Spa, which operates the airline's frequent flyer programme MilleMiglia.
A statement said: "We believe in Alitalia. It is a great brand with enormous potential. With the right level of capitalisation and a strong, strategic business plan, we have confidence the airline can be turned around and repositioned as a premium global airline once again.
“Alitalia is the perfect ambassador for Italy and all that it represents. As we revitalise the brand, the airline will increasingly embody all that we recognise as quintessentially Italian – the history, culture, food and fashion. It must be an airline of which Italians can be proud.”
Starting from Winter 2014, Alitalia will increase frequency between Rome Fiumicino and Abu Dhabi from five a week to a daily service, and commence a new daily service between Milan and Abu Dhabi.
Etihad also said Rome Fiumicino will emerge as a larger European intercontinental hub, with up to five new routes over the next four years, while long-haul flights from Milan Malpensa will more than double to 25 flights a week by 2018.
Etihad.com