EU approves Etihad purchase of 49 per cent of Italy's Alitalia
20.11.2014
Abu Dhabi's Etihad Airways has won approval from European Union regulators to expand its cargo footprint by taking a 49 per cent of loss-making Italian-flag carrier Alitalia.
The EUR387.5 million (US$484 million) deal makes ready Etihad's plan to revive and expand Alitalia's moribund air freight operation as part of a EUR1.76 billion rescue of a carrier that hasn't made a full-year net profit since 2002.
Etihad CEO James Hogan said relaunching and growing Alitalia's cargo operation is a key part of the airline's strategy as it moves to close with Emirates and Qatar Airways.
Alitalia reduced its cargo business, selling its remaining MD-11 freighters in 2011 and focused on passengers in a financial restructuring following a near-bankruptcy, reported Newark's Journal of Commerce.
Rivals Lufthansa Cargo and Cargolux, beefed up their presence in the Italian market following the collapse of Cargoitalia. A domestic airline bought the three MD-11Fs, then ordered five Airbus A330 freighters opened with Alitalia's withdrawal.
The EUR387.5 million (US$484 million) deal makes ready Etihad's plan to revive and expand Alitalia's moribund air freight operation as part of a EUR1.76 billion rescue of a carrier that hasn't made a full-year net profit since 2002.
Etihad CEO James Hogan said relaunching and growing Alitalia's cargo operation is a key part of the airline's strategy as it moves to close with Emirates and Qatar Airways.
Alitalia reduced its cargo business, selling its remaining MD-11 freighters in 2011 and focused on passengers in a financial restructuring following a near-bankruptcy, reported Newark's Journal of Commerce.
Rivals Lufthansa Cargo and Cargolux, beefed up their presence in the Italian market following the collapse of Cargoitalia. A domestic airline bought the three MD-11Fs, then ordered five Airbus A330 freighters opened with Alitalia's withdrawal.
