Friday, November 14, 2014

EU clears the way: Etihad may Alitalia check – n-tv.de NEWS

EU clears the way: Etihad may Alitalia check – n-tv.de NEWS

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 Friday, November 14, 2014

 
 
 


 
 At Lufthansa, the development will be closely monitored: The EU allows the Arab rivals Etihad a stake in Alitalia. Etihad continues its aggressive expansion continues – and also plans to compounds with Air Berlin
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The EU Commission has approved the alliance between the airlines Etihad and Alitalia, subject to conditions. They gave the green light for the project of the airline from Abu Dhabi, after the two companies had made minor concessions.

You have some willingness to give up slots on the Rome-Belgrade. The reason was that direct flights between the two capitals so far only Alitalia and the – would be offered airline Air Serbia – Etihad’s. This threat of a monopoly and thus a price increase in ticket prices, was the EU’s fear.

The Etihad also participated in Air Berlin uses the ailing airline from Rome with investment of 1.75 billion euros under the arms. The deal also includes an impairment charge of 598 million euros in Alitalia debt and a capital increase of 300 million euros. Etihad receives in return a 49 percent stake.

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Alitalia steadily losing money for more than a decade. The problem of high labor costs, the airline is never really addressed. She has also never found a strategy against the fierce competition of low cost airlines that have corrupted their business in Europe. In addition, the competition is by high-speed trains on the once highly profitable route Milan-Rome.

Etihad has for years pursued an aggressive global expansion by taking over shares in other airlines. Alitalia is the eighth investment of this kind. The Arabs are the Lufthansa now put even more pressure. Etihad announced that it would Relationship between Air Berlin and Alitalia sought, as a challenge for the German top dog.

  Source: n-tv.de
 


 
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