Home News Etihad and Alitalia edge closer to deal

Etihad and Alitalia edge closer to deal


Airlines enter final phase of due diligence process

Etihad Airways and Alitalia confirmed on Sunday that they had entered the final phase of a due diligence process about a possible investment in the beleaguered Italian carrier.

During the next 30 days, both companies and their advisors will determine how a common strategy can be developed that meets the objectives of both parties.

Italian Prime Minister Enrico Letta, on a visit to Abu Dhabi to encourage investment in Italy, said he had high hopes for a deal. He added that he was “flexible” on the possibility of a change in Alitalia’s management.

Alitalia and Etihad have been in talks for several weeks. An investment could involve Etihad buying a 40% stake for €300 million, sources close to the talks say.

Alitalia carries 25 million passengers a year and provides access to Europe’s fourth-biggest travel market. But it has a net debt of more than €800 million and is losing around €700,000 every day.



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