Talks between the airlines intensified last month and sources close to the matter said Etihad might be interested in buying a stake of up to 40 per cent in the Italian carrier.
The Gulf carrier will initially operate the extra flights on two three-class Boeing 777-300ERs, leased from partner Jet Airways, and from May 1, Jet Airways will take over the service
The group’s planned capital expenditure, net of operating lease liability, will be reduced to $800 million in the next two years, providing reductions of AD$1 billion.