Abu Dhabi: Etihad Airways is currently in the final phase of due diligence on its possible investment in Italian carrier, Alitalia, Chief Executive Officer at Etihad, James Hogan said on Monday.
Hogan assured that Etihad is currently reviewing the business model, and will only commit to Alitalia if the Italian carrier can be moved to profitability.
“We haven’t agreed to acquire [stakes in Alitalia] yet. We’re viewing their business model … We’re in the middle of due diligence now, and once we come to a decision, we’ll make that note,” Hogan told Gulf News.
He added that such partnerships are part of Etihad’s long-term strategy to build a global network.
“Part of our [financial] results is due to our investment in these airlines. We wouldn’t have [looked into] these airlines unless we thought strategically it will work,” Hogan said.
However, David Bentley, Principal at UK-based aviation consultancy, Big Pond Aviation, described investments in Alitalia as risky.
“It fits Etihad’s network because it was, like Air Europa in Spain, not particularly strong in an easterly direction, especially for a flag carrier. But [Alitalia’s] finances aren’t great; the net loss in 2012 was the biggest in three years, it never really recovered from its bankruptcy a few years ago, and several other potential investors have cold feet,” Bentley told Gulf News in an emailed statement.