Etihad Airways and Alitalia are today reported to be in “advanced talks” over a deal that would see the Abu Dhabi airline become the largest shareholder in Italy’s cash-strapped national carrier.
Talks between the two airlines, which have been on and off for months, are focusing on Etihad taking a stake of between 30% and 49% in Alitalia.
This would include a capital injection of as much as €350 million, the Financial Times reported, citing two people familiar with the discussions.
Bloomberg had earlier reported that a deal could be agreed as early as yesterday.
A source close to the discussions said this was unlikely as talks were still continuing.
“But if a deal is going to be done, it is going to done in the next few days,” the source quoted by the FT said.
Alitalia is trying to avoid bankruptcy for the second time in five years as it struggles to overcome low-cost competition from the likes of easyJet and Ryanair and rising fuel prices.
Etihad has formed a string of partner carriers around the world by taking minority stakes including Aer Lingus and Air Berlin.