Etihad Airways today agreed a deal to take a 49% stake in struggling Alitalia.
No valuation was put on the proposed shareholding to be taken by the UAE carrier.
Negotiations are understood to have been going on for months for what many in the industry will see as a rescue plan for the loss-making Italian flag carrier.
A joint statement said “Alitalia and Etihad Airways today confirmed that they have agreed the principal terms and conditions of a proposed transaction whereby Etihad Airways will acquire a 49% equity stake in Alitalia.
“The airlines will now move to finalise the transactional documents, that will include the agreed upon conditions, as soon as possible. “
The conclusion of the investment is subject to final regulatory approvals.”
Etihad already has a string of minority shareholdings in carriers such as Aer Lingus and Air Berlin.