4 Feb 2014

Etihad looking to buy into Alitalia

12:46 pm on 4 February 2014

Etihad Airways of Abu Dhabi is close to agreeing a deal to buying a stake in Italian flag carrier Alitalia.

Neither side has disclosed the size of the deal but there are reports that Etihad could take up to 40 percent, giving it a stake in one of Europe's biggest travel markets.

But Lufthansa of Germany wants regulators to block it, saying that Gulf airlines like Etihad have an unfair advantage because they get state funding.

Alitalia is hoping to secure loans from its banks of up to $270 million, buying it enough time to keep it in the air until the Etihad deal is finalised.

It carried about 25 million passengers a year, but has debts of about 800 million euros.

Etihad also has stakes in Air Berlin, Aer Lingus, and Virgin Australia.