Etihad Airways aims to finish negotiations by the end of this month to go ahead with its investment in Alitalia, but the airline needs to be the “right size”.
“We need to right-size the airline [Alitalia] to go forward,” James Hogan, the president and chief executive of Etihad Airways, said in Rome yesterday.
“We are still negotiating and we have a target of the end of this month. Both teams are working in good faith to achieve that. We have a team of executives on the ground here working with our advisers JP Morgan. They are working with Citibank to ensure that they can broker the transaction to win,” he added.
Etihad aims to take a stake of up to 49 per cent in financially ailing Alitalia, after its board of directors had given its backing to the deal last month.
Etihad is demanding downsizing measures and thousands of job losses at the loss-making airline – just as it did when it took equity stakes in Air Serbia and Air Seychelles.
Etihad has gained a reputation for turning around struggling airlines in which it invests, but Alitalia could be the airline’s biggest challenge to date.
Three labour unions were planning a strike on Sunday to protest against the job cuts. But Anpac, one of the labour unions, told The National this week that the strike was put off after successful negotiations with the government.
Other conditions to turn Alitalia’s performance around include cutting loss-making routes, negotiating new employment contracts and reducing airport costs.
Mr Hogan said that Etihad can modernise Alitalia’s fleet, but only once the right changes are made.
“The advantage is that we have over 220 aircraft on our order book,” said Mr Hogan.
“We are the world’s largest operator of the [Boeing] 787s. We have 330 aircraft … We do have the ability as we go forward to use this aircraft in the Alitalia fleet. We have this flexibility.”
But Mr Hogan said the priority is to complete the transaction, stabilise the business, introduce the network changes and grow.
According to reports, Etihad’s initial investment in Alitalia will be €560 million (Dh2.78 billion), with another €660m to be injected in the future.
Asked if Etihad would address the European Commission’s concerns about keeping Alitalia in Italian hands, Mr Hogan said: “Of course, we take 49 per cent and 51 per cent [will be with] Italian investors. The board will reflect that. It’s fundamental … We have to abide by the rules.”
Last week, Etihad announced six new destinations for the first half of next year including Edinburgh and Madrid. It will also fly four times a week to Hong Kong.
Etihad’s growth strategy has relied heavily on expanding its route network through “equity alliances”, in which it invests in carriers that help it to expand its global reach in strategically important regions. Last year Etihad grew its equity alliance to seven, comprising Air Seychelles, Air Berlin, Virgin Australia, Air Serbia, Ireland’s Aer Lingus, India’s Jet Airways and Etihad Regional – formerly known as Darwin Airline.
selgazzar@thenational.ae
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Company%20Profile
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The specs
Engine: 3.8-litre twin-turbo V8
Power: 611bhp
Torque: 620Nm
Transmission: seven-speed automatic
Price: upon application
On sale: now
General%20Classification
%3Cp%3E1.%20Elisa%20Longo%20Borghini%20(ITA)%20Trek-Segafredo%3Cbr%3E2.%20Gaia%20Realini%20(ITA)%20Trek-Segafredo%207%20secs%3Cbr%3E3.%20Silvia%20Persico%20(ITA)%20UAE%20Team%20ADQ%201%20min%2018%20secs%3C%2Fp%3E%0A
Israel Palestine on Swedish TV 1958-1989
Director: Goran Hugo Olsson
Rating: 5/5
The specs: 2018 Nissan 370Z Nismo
The specs: 2018 Nissan 370Z Nismo
Price, base / as tested: Dh182,178
Engine: 3.7-litre V6
Power: 350hp @ 7,400rpm
Torque: 374Nm @ 5,200rpm
Transmission: Seven-speed automatic
Fuel consumption, combined: 10.5L / 100km
Know before you go
- Jebel Akhdar is a two-hour drive from Muscat airport or a six-hour drive from Dubai. It’s impossible to visit by car unless you have a 4x4. Phone ahead to the hotel to arrange a transfer.
- If you’re driving, make sure your insurance covers Oman.
- By air: Budget airlines Air Arabia, Flydubai and SalamAir offer direct routes to Muscat from the UAE.
- Tourists from the Emirates (UAE nationals not included) must apply for an Omani visa online before arrival at evisa.rop.gov.om. The process typically takes several days.
- Flash floods are probable due to the terrain and a lack of drainage. Always check the weather before venturing into any canyons or other remote areas and identify a plan of escape that includes high ground, shelter and parking where your car won’t be overtaken by sudden downpours.
Timeline
1947
Ferrari’s road-car company is formed and its first badged car, the 125 S, rolls off the assembly line
1962
250 GTO is unveiled
1969
Fiat becomes a Ferrari shareholder, acquiring 50 per cent of the company
1972
The Fiorano circuit, Ferrari’s racetrack for development and testing, opens
1976
First automatic Ferrari, the 400 Automatic, is made
1987
F40 launched
1988
Enzo Ferrari dies; Fiat expands its stake in the company to 90 per cent
2002
The Enzo model is announced
2010
Ferrari World opens in Abu Dhabi
2011
First four-wheel drive Ferrari, the FF, is unveiled
2013
LaFerrari, the first Ferrari hybrid, arrives
2014
Fiat Chrysler announces the split of Ferrari from the parent company
2015
Ferrari launches on Wall Street
2017
812 Superfast unveiled; Ferrari celebrates its 70th anniversary
PRO BASH
Thursday’s fixtures
6pm: Hyderabad Nawabs v Pakhtoon Warriors
10pm: Lahore Sikandars v Pakhtoon Blasters
Teams
Chennai Knights, Lahore Sikandars, Pakhtoon Blasters, Abu Dhabi Stars, Abu Dhabi Dragons, Pakhtoon Warriors and Hyderabad Nawabs.
Squad rules
All teams consist of 15-player squads that include those contracted in the diamond (3), platinum (2) and gold (2) categories, plus eight free to sign team members.
Tournament rules
The matches are of 25 over-a-side with an 8-over power play in which only two fielders allowed outside the 30-yard circle. Teams play in a single round robin league followed by the semi-finals and final. The league toppers will feature in the semi-final eliminator.
Company%20Profile
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Company%20Profile
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The five pillars of Islam
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TRAP
Starring: Josh Hartnett, Saleka Shyamalan, Ariel Donaghue
Director: M Night Shyamalan
Rating: 3/5
Company%C2%A0profile
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Wydad 2 Urawa 3
Wydad Nahiri 21’, Hajhouj 90'
Urawa Antonio 18’, 60’, Kashiwagi 26’