Etihad-Alitalia Merger Gets EC Approval

After months of difficult negotiations, struggling Italian national airliner Alitalia received a much awaited decision in its favour as the European Commission approved a deal that will see Etihad Airways take a 49% stake in Alitalia.

EC gave the merger the go-ahead under the condition that the airlines opened up the Rome-Belgrade route to competitors.

Etihad and Alitalia signed a deal on August 8 for the Emirates national carrier to become a shareholder in Italy's flagship but debt-laden airline, in a move that will widen Etihad's reach into the European market.

Etihad, based in Abu Dhabi, is expected to invest 560 million euros ($750 million) to become the main stakeholder in the Italian airline, which has lurched from crisis to crisis for years.

Alitalia said this investment will provide financial stability and a foundation for impressive long-term growth for the company. Etihad has expanded hugely since it was founded in 2003 and now has stakes in India's Jet Airways, Air Serbia, Air Seychelles, Aer Lingus and Air Berlin.