Dubai: Etihad Airways Chief Executive James Hogan said on Wednesday the airline, and those it holds shares in, cannot compete with European legacy carriers without the equity stakes.

“Alone, neither Etihad Airways nor our network partners can hope to effectively compete against the might of the European legacy carriers and their alliances. Alone, neither of us would succeed in increasingly competitive markets,” Hogan said in Italy during a visit to launch Etihad’s new Abu Dhabi-Rome service, according to an Etihad statement.

It is the second time in as many weeks Hogan has used an appearance in Europe urging regulators and critics to accept the airlines equity stake strategy.

The European Commission, the European Union’s executive arm, is looking into whether holdings by foreign airlines in a number of European carriers contravene foreign ownership laws by giving them a controlling influence.

“In each case, we work within the regulatory framework. We have no control, nor do we desire it,” Hogan said of the airlines minority investments in several airlines.

Etihad holds stakes in several airlines including Air Berlin, Air Serbia and Aer Lingus. It is awaiting regulatory approval for a stake in Etihad Regional, formerly Swiss carrier Darwin Airline.

Executives from Lufthansa and Air France KLM last month urged the European Commission to scrutinise investments and holdings by state-owned airlines such as Etihad.

Hogan said the equity investment strategy was benefiting international markets and not just Etihad and Abu Dhabi.

“Airlines are scale businesses … They need scale in networks to be able to offer customers a competitive choice to as many destinations as possible. And they need scale in operation to deliver efficiencies and synergies which contribute to profits,” he said.

Etihad is looking to finalise a 49 per cent stake in Italy’s national airline Alitalia. Hogan said he is pushing to have the deal signed by the end of the month.

“We’re all focused on the end of this month. With our agreement, more time is allowed but our focus is the end of the month,” Hogan said.

With inputs from AFP.