Last week, the long-negotiated agreement for Abu Dhabi based Etihad Airlines to purchase a 49% minority stake in Italy’s Unknownbeleaguered Alitalia airlines was finalized.  The transaction includes several elements:

  • €387.5M in cash for 49% of Alitalia
  • €112.5M for a 75% interest in Alitalia’s frequent flyer program
  • €60M for 5 pairs of slots at London Heathrow airport
  • €300M authorized capital increase from current investors
  • €300M in new loans
  • €598M in debt restructuring of existing short-to-medium loans

In total, the package is worth €1.8 billion, or about $2.4 billion US.

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