Etihad Airways honoured for Alitalia deal

Miami - Etihad Airways, the national airline of the United Arab Emirates, received the Airfinance Journal ‘Merger and Acquisition Deal of the Year’ award at a ceremony in Miami.
 
It was presented in recognition of Etihad Airways’ acquisition of a strategic minority equity stake in Alitalia, the national carrier of Italy in 2014.
 
James Hogan, president and CEO of Etihad Airways, said: “We are delighted and honoured to receive this award. It is an endorsement not only of this transaction, but of our business model, which leverages partnership and economies of scale for network growth and to create business synergies across the broad spectrum of airline activities.  
 
“Alitalia is one of the most iconic brands in global aviation in one of the world’s largest travel markets. We were confident that with the right level of capitalisation and a strong, strategic business plan, the airline could be turned around and repositioned as a premium global airline once again.”
 
As part of the restructuring deal valued in total at more than €1.75bn, Etihad Airways invested €560m to acquire a 49% shareholding in New Alitalia, 75% of its frequent flyer program and asset purchases to restructure the airline’s balance sheet.  
 
This was complemented by a further equity investment of €300m from existing core Alitalia shareholders.
 
The transaction was completed on 31 December 2014, after receiving European Commission merger clearance, leading to the establishment of New Alitalia SAI.
 
“This is a strategic, long-term commercial investment for us and we are committed, with the other shareholders, to support the new management team to reinvigorate Alitalia as a competitive, sustainable and profitable business that can operate successfully in the global air travel market,” Hogan said.
 
A strategic development plan to deliver profitability by 2017 has since been unveiled.