Alitalia (AZA, Rome Fiumicino) and Etihad Airways' planned joint-venture has been given the greenlight by the European Commission (EC). Brussels said in a statement late last week that the decision is conditional on the venture relinquishing up to two daily slot pairings on the Rome Fiumicino-Belgrade Nikola Tesla route where concerns have been raised about a possible monopoly. The route is also plied by Air Serbia (JU, Belgrade Nikola Tesla), another Etihad affiliate.
"Furthermore, Alitalia CAI and Etihad committed to offering a special prorate agreement, a fare combinability agreement, an interline agreement and access to their frequent flyer programme to new entrants, to make entry more likely," the EC said.
The EC stated it had also considered the transaction in light of Etihad's investments in Air Berlin (1991) (Berlin Tegel), Darwin Airline (Lugano), and Jet Airways (Mumbai International).
Etihad expects to invest a total of EUR1.758billion (USD2.357billion) into the new Alitalia over the next three years. Of its investment, EUR387.5million will go towards acquiring the 49% stake, EUR112.5million for a 75% stake in Alitalia's MilleMiglia frequent-flyer program, and EUR60million for five London Heathrow slot pairs.
Former Ferrari boss Luca Cordero di Montezemolo has been named as the new Alitalia's chairman with Etihad Airways CEO James Hogan his deputy.
