Etihad Airways appears close to making a final decision as to whether or not to buy an equity stake in Alitalia. Speaking during a March 3 conference call about the Abu Dhabi-based airline’s latest quarterly financial results, CEO James Hogan confirmed that Etihad has entered the final stage of due diligence in evaluating the struggling Italian flagcarrier.
Financial situation of Alitalia
UK regional airline Flybe has raised almost $260 million in fresh capital through a share flotation launched February 20 in London. The company, which has been battling to rebuild its business model with an aggressive program of cost cutting, is issuing a total of up to 141.5 million new shares to raise £155.6 million. The offer price on February 20 was 110p per share, representing a 7.2-percent discount on the stock’s 118.5p mid-market price on February 19.
Facing high costs and increased competition, Air France-KLM’s management must pick its battles. Having announced plans for up to 2,800 job cuts on September 18, the European airline this week deferred a decision on whether or not it will provide further investment to plug holes in the sieve-like balance sheet of Alitalia. It holds a 25-percent stake in the Italian carrier, and Italy’s government has indicated it would be willing to see the Franco-Dutch group increase that share to 50 percent.
Embraer and Alitalia finalized an agreement for the delivery of 15 E175s and five E190s through a lease structure arranged by third parties, the Brazilian manufacturer announced today.
Brazil’s Embraer said it expects to complete negotiations on a firm order for six of its 70-seat 170 jets “in the coming weeks” with Italian flag carrier Alitalia. According to Embraer, Alitalia has accepted a commercial proposal that includes the conversion of six options on 48-seat ERJ-145s and new options for six 170s and/or 108-seat 190s.