Last
year’s ground-breaking investment by Etihad Airways in Alitalia has revitalised
Italy’s national airline, and set it on a new course towards sustainable
profitability, the President and Chief Executive Officer of Etihad Airways,
James Hogan, said today. Mr. 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", Mr 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,” Mr 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.”
Mr
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,” Mr 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.
"A
strong Alitalia is essential for Italy," he said. "Without Alitalia,
air connectivity to, from and within Italy would be seriously diminished and
left to others without the same commitment to Italy or Italians." Mr. Hogan said that as a strategic shareholder, Etihad Airways needed to see a
return on its investment, and together with Alitalia’s management had set a
three-year timeline for achieving sustainable profits. In this first year, the aim
is to reduce losses, with break-even targeted in 2016 and profitability in
2017.
"We
are not a bank,” Mr Hogan said. “We needed to stabilise the business
financially by providing fresh capital. We also needed to work with Alitalia,
its unions and its partners to identify immediate opportunities to cut costs.
These included seeking efficiencies, restructuring the network and schedules,
and reducing the short-haul fleet to maximise aircraft utilisation. There were
immediate results."
Etihad
Airways helped expand Alitalia's global reach by connecting the networks of
both airlines via Etihad's hub and home base in Abu Dhabi, capital of the
United Arab Emirates, with each carrier entering into codeshare agreements on
each other’s services. Etihad also assisted Alitalia in sourcing new wide-body
aircraft to increase long-haul services.
"We
have not only ensured that Alitalia stays in the air,” Mr Hogan said. “We have
also invested in protecting and creating jobs in Italy. We have invested in
rebuilding the Alitalia brand. And we have invested in Alitalia with the clear
commitment that we will help it to grow into a prestige global brand, and an
airline and company which contributes to Italy." –End-
Image
by: http://www.eturbonews.com
No comments:
Post a Comment