Etihad presents offer to Alitalia

Etihad CEO James Hogan

ROME-The letter of intent specifying the conditions under which Etihad will invest in Alitalia has arrived, a spokesman for Transport Minister Maurizio Lupi said Friday.

 Following the meeting between Mr Lupi and Etihad CEO James Hogan in early April, the Emirati company has now presented its offer of a 300 mln euro investment in the debt-laden Italian air carrier.

 “The negotiations are still in progress but we are in the final phase,” stated the Italian transport minister. “Alitalia is responding to all observations made by Etihad (…) and if they find our response convincing, we will go ahead with the letter of intent.”

 “As soon as we receive a reply from the Italian shareholders, and if and when we reach an agreement, we as the Government will have to evaluate all that falls under our jurisdiction and concerns strategic development, and the industrial and employment matters,” explained Mr Lupi.

 What concerns the government and trade unions most are the aspects of the potential agreement related to employment issues, and possible cuts and pay reductions to be introduced, but also re-qualification of the Fiumicino hub, and a relaunch of Malpensa aiport, which, according to Mr Lupi, has been confirmed as “strategic” by the Emirati company.