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A letter of intent that would see
Etihad Airlines take a significant stake in troubled Italian
flag carrier Alitalia could come as early as Monday, Transport
Minister Maurizio Lupi said Friday.
Lupi met with Etihad Chief Executive Officer James Hogan
earlier in the day, after meetings Thursday night between the
CEO and Italian Premier Matteo Renzi.
Sources said that following that session, an investment
deal that would see the Abu Dhabi-based airline inject as much
as 300 million euros into Alitalia in return for a stake of
about 40% was "close".
The major stumbling block, they said, is the number of
layoffs that the deal would entail.
Earlier this week, Lupi said that Etihad Airlines had
finished its "due diligence" in examining Alitalia's accounts.
Investments in troubled Alitalia have been controversial,
as rival carriers have complained that deals could contravene
European Union regulations on State aid.
That is the basis of a complaint by German carrier
Lufthansa about the Etihad investment while the owner of British
Airways has raised the same rational for its complaints about a
rescue plan coordinated by the Italian government late last
year.
That plan included a controversial 74-million euro
investment by Italy's state-owned post office Poste Italiane.
International Airlines Group (IAG), the holding company
that owns British Airways, Iberia and Vueling called that a form
of protectionism and said it was illegal under EU laws governing
State assistance to businesses.
Meanwhile, in early April the European Commission warned
Italian authorities to be careful to follow EU rules on
ownership and control of European companies, and investments
involving carriers from countries outside of Europe with
reference to Etihad.
The Gulf carrier was drawn to Alitalia as it is vying to
broaden its network in Europe.
Etihad has been expanding aggressively into Europe, and
Alitalia would give it a further foothold in a lucrative market.
After buying 29% of Air Berlin, Germany's second-largest
airline, in 2011, Etihad has taken stakes in carriers across the
world, including Air Serbia, Aer Lingus, Darwin Airlines, Virgin
Australia, Jet Airways and Air Seychelles.
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