The airline is increasing its services to Beirut and Amman from July.
The agreement includes codesharing, frequent flyer reciprocity, airport lounge access, air pass agreements and cargo cooperation between two airlines.
The German airline had said last month it was in talks over certain options that prompted speculation that Etihad could gain more control over the carrier.
The airport’s passenger traffic was boosted by the expanding networks of Emirates and flydubai, authorities said.
Airline’s first superjumbo scheduled to take off from the new airport
This morning sees the second round of diversions in as many months
Airbus is already working on an all-electric two-seater plane hoping this technology will serve as a step to bringing electric motors on to larger aircraft.
Initially budget airlines will operate at the airport, while other airlines will start services there in May, the airport authority said.
Etihad has so far refused to negotiate with Italy’s unions, which have sunk negotiations between Alitalia and other bidders in the past.
The airport welcomed around 4.5 million passengers during the first three months this year.
New additions include executives from Air Canada and Air New Zealand.
The Abu Dhabi-based Etihad has been looking at Alitalia’s books for a possible investment since the start of the year.
The 80-day renovation programme at the airport will begin on May 1.
The UAE carrier said the deal was the starting point of further negotiations, raising the possibility of a codeshare or equity partnership with Fiji in the future.
The Sharjah-based low-cost carrier has been designated the new airline of Ras Al Khaimah following the closure of RAK Airways.
The airline’s growth in revenue was aided by an increase in passengers resulting from its codeshare and equity partnerships.
The Japanese car maker sold around 5,892 units in the region during its financial year ended March 2014.
Minister wants to ‘turbo charge’ investment opportunities on back of abundant air links
Move likely to be welcomed by resident and transfer passengers but both airports will be under scrutiny
Emirates, which may appeal the decision, started to fly the Malpensa-New York route in October last year.
The Gulf carrier is expected to give a proposal to the Italian airline soon to start formal talks on the potential investment.
German media reports last month said the UAE-based airline could increase its stake in Air Berlin to 49.9 per cent from the current 30 per cent.
The region saw the strongest passenger growth worldwide, IATA said.
AerLift Leasing was established in 2010, with Waha Capital owning a 60.7 per cent stake.
UniCredit, which is one of Alitalia’s creditor banks, owns a 13 per cent stake in the airline after it took part in a 500 million euro share issue.
Etihad has finished reviewing Alitalia’s books as it considers whether to invest as much as 300 million euros via a capital increase, sources say.
A carrier must be more than 50 per cent owned and “effectively controlled” by an EU member state or EU citizens to obtain an operating license.
The Emirates App will allow passengers to manage their booking, check in online and download their boarding pass.
Flynas currently carries three million passengers annually and claims 15-18 per cent of the domestic air travel market.