Press Release: Mergers: Commission approves Etihad’s acquisition of joint control over Alitalia, subject to conditions

On the 14 November 2014 the European Commission cleared under the EU Merger Regulation the proposed acquisition of joint control over New Alitalia of Italy by Alitalia Compagnia Aerea Italiana S.p.A. ('Alitalia CAI') of Italy, and Etihad Airways PJSC ('Etihad') of the United Arab Emirates. New Alitalia would take over Alitalia CAI's aviation business. The decision is conditional upon Alitalia CAI and Etihad's commitment to, in particular, release slots to a new entrant at the airports of Rome Fiumicino and Belgrade. Currently Alitalia CAI and Air Serbia, which is jointly controlled by Etihad, are the only carriers offering direct flights on the Rome–Belgrade route. The Commission had concerns that the monopoly created by the transaction on the Rome–Belgrade route could lead to higher prices and a loss of service quality for passengers. The commitments address these concerns.

The transaction consisted of the creation of a new joint venture, New Alitalia, which would receive Alitalia CAI's aviation business as a going concern. Moreover, Etihad would acquire sole control over Alitalia Loyalty S.p.A. (Italy), a subsidiary of Alitalia CAI that managed Alitalia CAI's frequent flyer programme.