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EU: Etihad cleared to salvage Alitalia, with conditions

By  |  November 12, 2014

The European Commission will allow Etihad Airways to acquire a 49 percent stake in the struggling Alitalia, two unnamed sources said Wednesday, but conditions will be imposed on the deal.

According to reports, the United Arab Emirates-based airline is set to pay nearly $2.2 billion for the Italian carrier, hit with fierce competition at home from both low-cost rivals and high-speed trains. The acquisition will allow Alitalia to invest more in longer routes in hopes of boosting profits, reports say.

But the Commission will require divestitures at some airports; Etihad and Alitalia have offered to give up airport slots on the route between Rome and Belgrade, report say. The sources did not indicate whether authorities will require more divestitures than this.

Etihad has heavily pursued the European market in recent years. The airline currently holds shares in Air Berlin, Ireland-based Aer Lingus, and others.

Full content: Reuters

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