Abu Dhabi: Etihad Airways will hire more than 120 pilots from Italy as part of last month’s announced €560 million (Dh2.7 billion) deal to take a 49 per cent stake in the troubled Italian carrier Alitalia.
James Hogan, Etihad Airways’ president and chief executive, confirmed the number in a speech at the International Air Transport Association (IATA) World Financial Symposium in Abu Dhabi on Wednesday.
In August, Etihad and Alitalia announced the half-billion euro equity stake deal that includes 2,000 job cuts at the Italian airline. Alitalia chief executive, Gabriele Del Torchio, apologised for the redundancies at last month’s announcement and said a number of pilots and engineers would be offered positions in Abu Dhabi.
Wednesday’s confirmation of the number of Alitalia pilots heading to Abu Dhabi highlights the complexities of the deal that took nearly 12 months of negotiations and was met with opposition by Italian unions over the redundancies.
Hogan said on Wednesday that the pilots will be employed in Abu Dhabi by Etihad for three years, which suggests they will return to Italy. In August, Hogan said Alitalia will deliver a return on Etihad’s investment and be profitable within three years with a forecast of €100 million profit in 2017.
Hogan declined to answer questions from the press following his speech.
In his remarks, Hogan defended the airline’s acquisition strategy of eight carriers that stretches from Australia to Ireland. Of this, two, including the Alitalia deal, are pending regulatory approval.
“It’s not about control. It’s about a different model,” he said, adding that the strategy is “pro-competitive”.
Bid resubmitted
European carriers have questioned the influence of Etihad over the airlines it holds stakes in. The European Commission is currently looking at Etihad’s nearly 30 per cent stake in Air Berlin, while Etihad has had to resubmit its bid to take a 33.3 per cent stake in Swiss carrier Darwin Airline, now Etihad Regional, after the original application failed regulatory scrutiny.
Etihad’s 49 per cent stake in Alitalia will make it the single largest shareholder.
A European carrier must be majority owned — and controlled — by European companies or shareholders to retain air traffic rights.
Separately, Hogan took a stab at the global alliances, Oneworld, Star Alliance and SkyTeam, which he said are “fractured”.
The Etihad chief, who again said his airline has no intentions of joining the global alliances, seemed to reassure concerns that Etihad could push the airlines it holds stakes in to leave the major alliances.
“We have no problem with Alitalia being a member of Sky Team or Air Berlin being in oneworld if it works for their model,” he said.
