Saturday, Dec 27, 2014Saturday, Dec 27, 2014

Business

 

Etihad says agreed principal terms to buy 49% of Alitalia

Published on Jun 25, 2014 5:14 PM
 
Abu Dhabi's state-owned Etihad Airways said on Wednesday, June 25, 2014, it had agreed principal terms and conditions to buy a 49 per cent stake in Italy's loss-making airline Alitalia. -- PHOTO: AFP

ABU DHABI (REUTERS) - Abu Dhabi's state-owned Etihad Airways said on Wednesday it had agreed principal terms and conditions to buy a 49 per cent stake in Italy's loss-making airline Alitalia.

A tie-up with cash-rich Etihad is seen as a last chance to turn around Italy's flagship carrier, which has made an annual profit only a few times in its 68-year history and received numerous state handouts before being privatised in 2008.

The two airlines will now finalise the deal as soon as possible, subject to regulatory approvals, they said in a joint statement without elaborating on the terms of the deal.

The board of troubled Alitalia voted on June 13 to accept an offer by Etihad to invest, but did not give details.

 
If you are not a subscriber, you can get instant, unlimited access here

Videos