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Etihad CEO: Global investment is not a threat but a lifeline
(MENAFN- Arab News) Last year's ground-breaking investment by Etihad Airways in Alitalia has revitalised Italy's national airline and set it on a new course toward sustainable profitability the president and chief executive officer of Etihad Airways James Hogan has said.
Hogan was speaking at the Rimini Roundtable Discussion a prestigious annual event held in the historic Italian town of Rimini to discuss issues of cultural and economic importance to Italy.
Addressing the segment titled "Banking on and Investing in Italy" Hogan said: "Alitalia is a company with a great heritage and global brand recognition. But over many years Alitalia has lost its way and become a challenged business.'
Etihad Airways invested 560 million euros in a multi-level deal comprising a 49 per cent equity stake in Alitalia a 75 per cent stake in Alitalia's loyalty program MilleMiglia the purchase from and leaseback to Alitalia of five pairs of arrival and departure slots at London Heathrow Airport and shareholder loans to reduce Alitalia's immediate financial liabilities. Etihad's commitment was the largest part of a broader investment with other stakeholders which totalled 860 million euros.
'Aviation is a global industry not a local one' Hogan said. 'Like so many other industries aviation should have access to global investment funds in order to provide the capital required to grow efficiently and remain competitive.
'Global investment is not a threat' he said. 'It is both a lifeline and an energiser which can only be good for European aviation European economies and European jobs.'
Hogan said the Etihad Airways investment in Alitalia was a cost-effective way for both airlines to progress while delivering more choice and better quality to consumers.
"Let's not forget that nobody else wanted to invest in Alitalia' Hogan said. 'But we see a great future for Alitalia and we are committed to working with other shareholders and with the airline to help rebuild it as a premium brand and a profitable business.
Hogan was speaking at the Rimini Roundtable Discussion a prestigious annual event held in the historic Italian town of Rimini to discuss issues of cultural and economic importance to Italy.
Addressing the segment titled "Banking on and Investing in Italy" Hogan said: "Alitalia is a company with a great heritage and global brand recognition. But over many years Alitalia has lost its way and become a challenged business.'
Etihad Airways invested 560 million euros in a multi-level deal comprising a 49 per cent equity stake in Alitalia a 75 per cent stake in Alitalia's loyalty program MilleMiglia the purchase from and leaseback to Alitalia of five pairs of arrival and departure slots at London Heathrow Airport and shareholder loans to reduce Alitalia's immediate financial liabilities. Etihad's commitment was the largest part of a broader investment with other stakeholders which totalled 860 million euros.
'Aviation is a global industry not a local one' Hogan said. 'Like so many other industries aviation should have access to global investment funds in order to provide the capital required to grow efficiently and remain competitive.
'Global investment is not a threat' he said. 'It is both a lifeline and an energiser which can only be good for European aviation European economies and European jobs.'
Hogan said the Etihad Airways investment in Alitalia was a cost-effective way for both airlines to progress while delivering more choice and better quality to consumers.
"Let's not forget that nobody else wanted to invest in Alitalia' Hogan said. 'But we see a great future for Alitalia and we are committed to working with other shareholders and with the airline to help rebuild it as a premium brand and a profitable business.
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