ROME: Italian airline Alitalia is due to clinch a tie-up deal with Abu Dhabi’s Etihad on August 8, Italy’s transport minister said yesterday, in a deal Rome hopes will turn the loss-making flag carrier into a money spinner.
Italy’s government is keen to sell a 49 percent stake in the Rome-based company to the Abu Dhabi airline and conclude talks which have dragged on for more than seven months.
“A date has been fixed for signing the deal: August 8,” Transport Minister Maurizio Lupi said, adding that final details of the deal would be set in stone next week.
The board of Alitalia, which has failed to compete with low-cost airlines and high-speed trains and made a profit only a few times in its 68-year lifespan, met yesterday at Rome’s Fiumicino airport.
Chief Executive Gabriele Del Torchio said after the meeting that the Italian airline’s most recent proposal to Etihad
on issues including how to deal with its €800m debt pile had been well received by the prospective buyer.
“We have received a response from Etihad. It is positive, but some things still need to be cleared up,” Del Torchio said.
Alitalia’s board approved a capital hike of up to €300m earlier yesterday , recommending shareholders raise a previously agreed limit by €50m, a person close to the matter said.
At a meeting on August 8, shareholders will also vote on the capital hike, intended to cover any losses the airline might make before a tie-up is finalised and pay for past liabilities.
Reuters
