Dubai/London: Meridiana SpA, Italy’s second-largest airline, said a holding company of its owner the Aga Khan has signed a preliminary accord on a partnership with Qatar Airways.

The memorandum of understanding between the Gulf carrier and Alisarda lays out conditions for a transaction to be completed in the first half, Meridiana said on Thursday. Under European law, Qatar Air could buy as much as 49 per cent of the Olbia, Sardinia-based carrier.

“The two parties have agreed upon the pillars of the business proposition, which envisages a reinforcement of Meridiana with the objective of making it a solid player in the very competitive European aviation industry,” the Italian airline said in a statement.

Qatar Airways, the second-biggest Middle Eastern operator, already owns a 10 per cent stake in British Airways parent IAG SA and has been linked with Royal Air Maroc, India’s SpiceJet and SriLankan Airways. Chief Commercial Officer Hugh Dunleavy said Wednesday that it’s open to taking stakes in companies needing “more of an investment” to reach full potential.

Meridiana’s 20-strong fleet is ripe for upgrade, featuring McDonnell Douglas MD-80s and first-generation Boeing Co. 737s, according to its website. The carrier connects Sardinia and Sicily with Italy’s main airports and has routes to Egypt, Greece, the Canaries and a handful of long-haul destinations.

The airline, which lost 155 million euros (Dh621.5 million, $171 million) in 2013, when it last posted numbers, said Tuesday that after a state-backed restructuring it had held discussions with ministers in Rome about “perspectives” for its future that include industrial partnerships.

For Qatar, a deal with Meridiana would prompt comparisons with Etihad Airways, which has bought stakes in struggling airlines including Italian No. 1 Alitalia SpA.

Open to high-potential deals:

Qatar Airways said it’s open to taking stakes in airlines that require investment to realise their full potential. While Qatar owns 10 per cent of British Airways parent IAG SA and views other “ultra-profitable airlines” as candidates for partnerships, that doesn’t rule out deals with smaller operators, Chief Commercial Officer Hugh Dunleavy said in an interview Wednesday in the UAE

“If there are other airlines where you would need to make more of an investment to get into a stage where it drives value, we would look at that,” he said in Ras Al Khaimah, where Qatar Airways was commencing flights.