Etihad, Alitalia to close investment deal in 30 days

Etihad Airways is in its final stages of closing the deal for a major stake in Alitalia. The two airlines which have been in negotiations since last year, recently announced that they are in the final phase of a due diligence process.

The two airlines have set a deadline of 30 days to determine a common strategy that can be developed to meet the objectives set by both parties.

The Abu Dhabi based airline will be acquiring a 49% stake in the troubled Italian airline.

Alitalia has been looking for funding since it’s stakeholder Air France KLM declined to participate in a €300 million fundraising last year.

This consequently caused Air France KLM’s stake to drop from 25% to 7.1% after declining to participate.

Ethihad has made similar investments with seven other airlines including Air Berlin, Air Serbia, Darwin Airline and Aer Lingus.