Alitalia and Etihad Airways declared that they have received approval from the European Commission for their €1.76 billion ($2.35 billion) strategic partnership, which was announced in August. The sanctions granted under EU Regulation 139/2004. The partnership will Etihad will invest €560 million ($750 million) including €387.5 million to buy 49% equity stake in Alitalia, €112.5 million to acquire a 75% interest in the airline’s frequent-flier program and €60 million to acquire five slot pairs at London Heathrow Airport, which plans to lease back “at arm’s length” to Alitalia.
On the other hand, existing Alitalia shareholders will invest another €300 million in the carrier. Financial institutions and bank shareholders have agreed to restructure €598 million in short- and medium-term debt and extend Alitalia a €300 million credit line.
The EC following the completion of its review affirmed that the partnership complies with the European regulations on competition.
Etihad Airways president and CEO James Hogan said, “We are delighted to be able to move forward with this process and look forward to a positive outcome and the final conclusion of our transaction with Alitalia. An equity investment in Alitalia will be beneficial not only for the both airlines, but, more importantly, it will give more choice and broader travel opportunities to business and leisure travelers into and out of Italy.” Alitalia CEO Gabriele del Torchio said, “This is an excellent outcome for Alitalia. This investment will provide financial stability and a foundation for impressive long-term growth for the company and for the travel and tourism industry in Italy, in which Alitalia is a fundamental player.”
On the other hand, existing Alitalia shareholders will invest another €300 million in the carrier. Financial institutions and bank shareholders have agreed to restructure €598 million in short- and medium-term debt and extend Alitalia a €300 million credit line.
The EC following the completion of its review affirmed that the partnership complies with the European regulations on competition.
Etihad Airways president and CEO James Hogan said, “We are delighted to be able to move forward with this process and look forward to a positive outcome and the final conclusion of our transaction with Alitalia. An equity investment in Alitalia will be beneficial not only for the both airlines, but, more importantly, it will give more choice and broader travel opportunities to business and leisure travelers into and out of Italy.” Alitalia CEO Gabriele del Torchio said, “This is an excellent outcome for Alitalia. This investment will provide financial stability and a foundation for impressive long-term growth for the company and for the travel and tourism industry in Italy, in which Alitalia is a fundamental player.”