Arab Today, arab today etihad rescues alitalia from abyss with deal to take 49
Last Updated : GMT 01:44:06
Arab Today, arab today
Arab Today, arab today

Etihad rescues Alitalia from 'abyss' with deal to take 49%

Arab Today, arab today

Arab Today, arab today Etihad rescues Alitalia from 'abyss' with deal to take 49%

Alitalia planes
Milan - AFP

Emirates airline Etihad Airways tied up a deal to rescue debt-laden carrier Alitalia on Wednesday by taking 49.0 percent of the Italian company.
The two groups gave no details of the value of the deal or of any conditions, but two key issues are debt of about 1.0 billion euros ($1.36 billion) and overstaffing at Alitalia.
The government has warned that this is the last chance for Alitalia which has lurched from crisis to crisis for years.
A stake of 49.0 percent means that Alitalia retains its advantageous status as an European airline.
The deal, concluding tough negotiations which began at the end of last year, means that Etihad Airways is in effect rescuing Alitalia, playing a role which Air France once considered but then dropped because of the scale of the problems.
Alitalia, rescued several times over several years, is again in dire straits.
If it had gone bankrupt, the fall of this high-profile name would have had a severe financial and psychological impact on Italy which is struggling to climb out of a deep recession lasting more than two years. 
The agreement also marks a big step in the rise of Etihad Airways as a young and rapidly growing company.
It now becomes a key shareholder in one of the old names of European aviation, and increases its reach into European markets and global routes.
Italian Transport Minister Maurizio Lupi said: "It's increasingly clear that this marriage must be tied up because it is now obvious to everyone that it amounts to a big industrial investment with concrete chances of development for our company."
Etihad has insisted that the debt be restructured.
Alitalia is now in the hands of private shareholders, but has its roots in the days when most European countries had their own state-owned airlines. 
The debt and staff cuts are believed to have been central sticking points in the negotiations, but the breakthrough came late on Tuesday at a meeting between banks and shareholders.
Alitalia employs 12,800 and it is believed that about 2,200 jobs will have to be axed.
Etihad Airways has expanded rapidly in recent years, largely on a rise of air travel in the Gulf region of the Middle East.
In a joint statement, the two airlines said they had agreed the "terms and conditions of a proposed transaction whereby Etihad Airways will acquire a 49 percent equity stake in Alitalia."
They said they would tie up the deal as soon as possible subject to approval from regulators.
- Etihad, 'or the abyss' -
The chief executive at Alitalia, Gabriele del Torchio, said early in June that Alitalia would have to face a "complex, exhausting and painful" restructuring, but that there was "no alternative".
And he mentioned 2,200 job cuts.
Lupi, in a warning on Monday to Italian trade unions which are strongly opposed to job cuts, said that Alitalia had but two options: "the plan for recovery with Etihad, or the abyss."
On June 11, Lupi mentioned that Etihad might make an initial investment of 560 million euros ($762 million). To this might be added "690 million euros in four years for the development and renewal of the fleet of aircraft."
The prospect of Etihad as a key shareholder is causing deep concern in northern Italy with fears that it would reduce activity at Milan's Malpensa airport.
The business plan for the new entity is believed to put an increased focus on on long-haul international flights which are more profitable than short routes where low-cost competition is fierce.
Etihad Airways already has already expanded in Europe, acquiring 29 percent of Air Berlin and 3.0 percent of Irish airline Aer Lingus. It also owns 40 percent of Air Seychelles and 19.9 percent of Virgin Australia.
Alitalia is owned by about 20 companies, all of which are private except the Italian postal service Poste Italiane which acquired an interest of 19.48 percent last year during a capital increase.
Italian bank Intesa Sanpaolo owns 20.59 percent and UniCredit bank 12.99 percent.
Air France-KLM refused to participate in the capital increase and so its holding fell from 25.0 percent to 7.08 percent.

arabstoday
arabstoday

GMT 21:21 2017 Thursday ,19 October

Shaikh Nasser praises BIDEC 2017 royal patronage

GMT 20:39 2017 Thursday ,19 October

Tesla fired hundreds of employees in past week

GMT 13:46 2017 Thursday ,19 October

Samsung's revamped Bixby takes on Amazon Alexa

GMT 21:35 2017 Wednesday ,18 October

King congratulated by Premier on BIDEC success

GMT 21:27 2017 Wednesday ,18 October

Shaikh Nasser praises Derasat efforts

GMT 11:54 2017 Wednesday ,18 October

Airbnb rentals boom across Africa

GMT 18:06 2017 Tuesday ,17 October

Three companies offering to search for MH370

GMT 19:24 2017 Sunday ,15 October

Royal Jordanian eyes operating profit this year
Arab Today, arab today
Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today etihad rescues alitalia from abyss with deal to take 49 Arab Today, arab today etihad rescues alitalia from abyss with deal to take 49

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today etihad rescues alitalia from abyss with deal to take 49 Arab Today, arab today etihad rescues alitalia from abyss with deal to take 49

 



Arab Today, arab today
Arab Today, arab today Arab tradition glitters in Colombia

GMT 12:59 2017 Thursday ,19 October

Arab tradition glitters in Colombia
Arab Today, arab today Second US judge orders freeze

GMT 08:04 2017 Thursday ,19 October

Second US judge orders freeze
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Silent Republicans have their reasons

GMT 16:55 2017 Thursday ,19 October

Silent Republicans have their reasons
Arab Today, arab today Hiring not part of Alibaba pledge

GMT 11:26 2017 Wednesday ,18 October

Hiring not part of Alibaba pledge
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Sidem reveals plan to improve education

GMT 15:52 2017 Friday ,06 October

Sidem reveals plan to improve education
Arab Today, arab today Ex-French minister Dati wants tough action

GMT 10:54 2017 Thursday ,19 October

Ex-French minister Dati wants tough action
Arab Today, arab today Massacre fears spark race

GMT 19:09 2017 Thursday ,19 October

Massacre fears spark race
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mercedes says recalls 400,000 UK cars

GMT 06:56 2017 Tuesday ,17 October

Mercedes says recalls 400,000 UK cars
Arab Today, arab today Britain's Vauxhall to cut 400 jobs

GMT 10:53 2017 Sunday ,15 October

Britain's Vauxhall to cut 400 jobs
Arab Today, arab today Hussein Fahmy happy for honoring in festival

GMT 07:47 2017 Tuesday ,17 October

Hussein Fahmy happy for honoring in festival
Arab Today, arab today Climate-disrupting volcanoes helped topple

GMT 16:00 2017 Wednesday ,18 October

Climate-disrupting volcanoes helped topple

GMT 09:31 2017 Monday ,16 October

Dalal Abdel Aziz happy for “Seventh Neighbor”

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman

GMT 18:29 2017 Sunday ,03 September

Designer produced new set of ornaments

GMT 05:11 2017 Tuesday ,17 October

Three killed, 360,000 without power

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 23:42 2017 Monday ,16 October

Better Marriages Make

GMT 06:52 2017 Monday ,16 October

Airbus CEO says won't cling to job

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 20:46 2017 Thursday ,19 October

Qualcomm files lawsuits in China to ban iPhones

GMT 19:29 2017 Tuesday ,29 August

Yomna: decoration leaved positive effects
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday