Doha
Etihad Airways must consider its relationship with other airlines if it is to take a potential equity stake investment in Alitalia, the Air France-KLM chief warned this week.
“Etihad has to maintain the partnership with us and with Delta on the transatlantic route because they are fruitful for all the parties, including Alitalia,” Alexandre de Juniac told reporters in Doha on Tuesday alongside the International Air Transport Association (IATA) annual general meeting.
The troubled Italian carrier is in a 12-year four-way transatlantic joint venture with Delta and the Air France-KLM Group that began back in 2010.
Greater access
Etihad is weighing up an equity stake investment in the loss-making carrier that would give the Abu Dhabi-based airline greater access to one of the top European passenger traffic markets.
Air France-KLM is in talks to lift its partnership with Etihad from a simple codeshare on routes between Abu Dhabi and Paris and Amsterdam to a revenue sharing joint venture.
Air France-KLM is also a minority shareholder in Alitalia and last year let its stake dilute from 25 per cent to 7 per cent. De Juniac said there are “no plans” to further dilute its holding.
Earlier this week, Etihad announced it was sending a letter of criteria for the investment to the Alitalia board and shareholders.
“We support the investment,” de Juniac said. “We are just waiting for the decision of Etihad to be confirmed and then we will discuss with them their plan for Alitalia.”
While Etihad and Air France-KLM are interested in working closer, Delta could potentially oppose synergy with the Abu Dhabi airline.
Earlier this year, Delta successfully lobbied regulators against Etihad launching a codeshare with Air Serbia on its services to the United States branding the potential Belgrade via Abu Dhabi route as “bizarre”.
Etihad has a five-year management contract and a 49 per cent stake in Air Serbia.
