Alitalia is expected to confirm a deal on Friday which will see Etihad Airways become the biggest single shareholder in the lossmaking Italian carrier.
The UAE carrier is expected to invest €560 million for a 49% stake in Alitalia and to provide a further €600 million over the next three years, aimed at pushing the struggling airline back to a €100 million profit in 2017.
Italy’s transport minister has announced Maurizio Lupi announced the agreement yesterday as he came out of a meeting with government officials and Etihad chief executive James Hogan, the Financial Times reported.
The transport minister described the agreement as “an important signal” that represents “an injection of confidence in Italy”.
It will allow Etihad – which already has minority stakes in Air Seychelles, Aer Lingus, Air Berlin, Virgin Australia and Air Serbia – to pursue its plans for a new global airline alliance.
The agreement will need approval from the Italian anti-trust authority and is likely to face scrutiny from the European Commission over the issues of state aid and the ownership of a non-European carrier.
Alitalia’s board is due to approve a €300 million capital increase, with Poste Italiane – the state-owned postal service that holds a 20% stake – set to contribute €75 million.
Under the agreement, Alitalia’s current investors will group their holdings in a company that will control 51% of the restructured airline and will not take on past debts and liabilities.