ABU DHABI: Etihad Airways is still negotiating commercial terms for a potential investment in Alitalia and is close to extending its partnership with Air Berlin, the chief executive of the Abu Dhabi airline said yesterday.
The Gulf carrier is eyeing an investment in Alitalia as it uses a combination of equity alliances and organic growth to expand its global reach and compete with fast-growing regional rivals Emirates and Qatar Airways.
Alitalia, kept afloat by a government-engineered $686m rescue package last year, needs to find a cash-rich partner quickly to revamp its flight network or else risk having to ground its planes.
Etihad said in February it was in the final stages of a due diligence process for a possible investment in Alitalia and would make a decision in a month. The deadline has now passed.
The Gulf carrier is expected to give a proposal to the Italian airline soon to start formal talks on the potential investment, sources have told Reuters. However, Hogan said on Monday that it was still at the due diligence stage on Alitalia. Reuters
