Etihad Completes Acquisition Of Stake In Alitalia Airlines

Etihad Alitalia

Etihad Airways completed the acquisition of 49 per cent equity stake in Alitalia, an Italian carrier. Both the airlines completed the formalities related to the transfer of air transport operations from Alitalia CAI to the new Alitalia SAI.

Etihad Airways subscribed and paid for the capital increase of Euro 387.5 million for the acquisition in Alitalia SAI. The remaining 51 per cent shareholding is held by Alitalia CAI through MidCo, which has contributed the agreed assets and liabilities for the continuation of the airline.

Earlier this year, both airlines announced the investment being made by Etihad Airways and the European anti-trust regulators cleared the deal last month. The transaction will become effective on December 31, 2014 and Alitalia SAI – Società Aerea Italiana will commence operations on January 1, 2015.

Alitalia airlines had gone through some rough weather struggling to stay in air after several turnaround programs failed in the past. However, acquisition by Etihad is expected to boost the functioning of the Italian airlines along with giving Etihad a wider access to Italy, which is touted to be the fourth largest travel market in Europe.

Apart from this acquisition, Etihad Airways also has stakes in other airlines like Air Berlin PLC, Aer Lingus Group Plc and Virgin Australia.

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