Alitalia and Etihad airways finalise €1,758 million investment deal

Etihad Airways and Alitalia today announced that they have signed the transaction implementation agreement which will result in a €1,758 million investment to build a reinvigorated Alitalia as a competitive, sustainably profitable business. Here are some of the highlights of the deal…

• Transaction implementation agreement will see Etihad Airways invest €560 million in the Italian carrier, becoming a minority shareholder (subject to regulatory approval), with core Alitalia shareholders committing an additional €300 million

• Additionally, up to €598 million in financial restructuring of short and medium term debt provided by financial institutions and existing bank shareholders

• €300 million new loan facilities extended by Italian financial institutions

• Recapitalisation safeguards thousands of Italian jobs and will allow Alitalia to invest in new long-haul routes, a revitalized brand, and a greater focus on Italian tourism and trade promotion

•Etihad Airways will take a 49 per cent shareholding in Alitalia, for an investment of €387.5 million

•New international routes and flights from more Italian cities to Abu Dhabi and beyond

• Optimised network and increased frequencies will increase competition and choice, while supporting tourism, trade and economic development

• Alitalia to benefit from network integration and cost synergies with Etihad Airways and its equity partners

• Alitalia’s cargo business will be relaunched and expanded, with the establishment of a centre of excellence in Northern Italy

• Goal of sustainable profitability by 2017

• Alitalia revitalised to embody Italian culture, history, art, fashion and food as an Ambassador for Made in Italy

• A revitalized brand, and a greater focus on Italian tourism and trade promotion - boosting inbound tourism

To see live footage of the in high-definition, go to http://youtu.be/aEQDrolAiRY