Etihad continues exam of Alitalia
P(See related) (ANSA) – Rome, April 7 – Etihad Airlines continued its examination Monday of the accounts of Italian carrier Alitalia as it considers making a major investment in the cash-strapped airline, according to reports.BREtihad, based in Abu Dhabi, is now considering the commercial terms of an arrangement between the two carriers, as it moves closer to an arrangement to take as much as a 40% stake in Alitalia.BREtihad is continuing its “due diligence” of Alitalia, Chief Executive Officer James Hogan said at the 2014 Global Aerospace Summit in Abu Dhabi, Bloomberg reported. “The mandate I have from the shareholders, the board, is if we can achieve an agreement that meets the commercial mandate then I am to come back and present that,” Hogan said, according to Bloomberg.BR”At the moment, that’s where we are with that discussion”.BRBecause Etihad is not based in the European Union, it is limited to minority stakes to airlines based in Europe, such as Alitalia.BRLate last week, the European Commission warned Italian authorities to be careful to follow EU rules on ownership and control of European companies, and investments involving carriers from countries outside of Europe.BRIf it goes through, the Abu Dhabi-based airline’s stake in its Italian counterpart would be the equivalent of a much-needed capital injection of more than 300 million euros.BRThe Gulf carrier is vying to broaden its network in Europe.BREtihad has been expanding aggressively into Europe and Alitalia would give it a further foothold in a lucrative market.BRAfter buying 29% of Air Berlin, Germany’s second-largest airline, in 2011, Etihad has taken stakes in carriers across the world, including Air Serbia, Aer Lingus, Darwin Airlines, Virgin Australia, Jet Airways and Air Seychelles. The president of Enac, Italy’s national civil aviation authority, said that the EC’s warning was legitimate and timely.BR/P
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