ITALIAN flag carrier Alitalia is now working on a strategic partnership with Etihad Airways that will see it give up 49 per cent of shares in exchange for cash.
An Alitalia press release dated last Friday stated: “The board of directors of Alitalia – Compagnia Aerea Italian, chaired by Roberto Colaninno, met today in Rome to approve the proposal presented by Etihad Airways for a partnership between Alitalia and Etihad Airways. The board delegated the mandate to negotiate the contract to the president and chief executive officer.”
The New York Times reported that Etihad’s offer included an initial investment of 560 million euros (US$759.7 million) in exchange for a writedown of several hundred million euros in debt and the termination of 2,200 jobs. This makes up 15 per cent of the Italian carrier’s workforce.
Alitalia remains on the brink of bankruptcy after racking up 840 million in net losses after it was pulled back from the edge and privatised in 2009, according to the same New York Times report.
