Etihad Completes Alitalia Purchase

Abu Dhabi-based carrier Etihad has announced that it has completed the acquisition of a 49 per cent stake in the Italian carrier Alitalia.

Both airlines announced the completion of all formalities related to the transfer of air transport operations from Alitalia CAI to Alitalia SAI- Società Aerea Italiana. The transaction will become effective on December 31, 2014 and Alitalia SAI will commence operations on January 1, 2015.

Etihad said that it has subscribed and paid for the capital increase of 387.5 million euros for the 49 per cent stake in the Italian carrier. The remaining 51 per cent of shares are held by Alitalia CAI through MidCo, which has contributed the agreed assets and liabilities for the continuation of the airline.

The deal is expected to give Etihad greater access to the fourth largest travel market in Europe while furthering its strategy of growing via acquisitions. Aside from Alitalia, Etihad has stakes in Air Seychelles, airberlin, Virgin Australia, Aer Lingus, Air Serbia and Jet Airways. It also has an investment in Darwin Airline that is pending approval.

The airline, which saw revenues grow year-on-year by 29 per cent to reach $1.8 billion in the third quarter of this year, has also launched a new airline alliance called Etihad Airways Partners with its equity partners.

The alliance will look to provide “improved networks and schedules and enhanced frequent flyer benefits” to its members, Etihad said.