Etihad to acquire 49pc of Alitalia airline

A look inside an Etihad Airways Airbus A 3820 cabin.   Photo | FILE

In Summary

• Alitalia is weighed down by huge debt.
• Dealing with this is believed to have been a big sticking point in the negotiations, which began at the end of last year.
• Another problem is cuts in the Alitalia workforce of 12,800 that will be needed. It is believed that about 2,200 jobs will have to be axed.

By AFP
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MILAN, Wednesday

Emirates airline Etihad Airways is to acquire 49 per cent of Alitalia, the two companies have said, concluding months of tough negotiations and following years of financial crises at the Italian airline.

Alitalia is weighed down by huge debt.

 

Dealing with this is believed to have been a big sticking point in the negotiations, which began at the end of last year.

Another problem is cuts in the Alitalia workforce of 12,800 that will be needed. It is believed that about 2,200 jobs will have to be axed.

Etihad Airways has expanded rapidly in recent years, largely on a rise of air travel in the Gulf region of the Middle East.

In a joint statement, which provided no details, the two airlines said they had agreed on the "terms and conditions of a proposed transaction whereby Etihad Airways will acquire a 49 per cent equity stake in Alitalia."

They said they would tie up the deal as soon as possible, subject to approval from regulators