Alitalia (AZA, Rome Fiumicino) and Etihad Airways (EY, Abu Dhabi International) should prepare for "long and difficult discussions" before the Emiratis' proposed acquisition of a stake in the Italian national carrier can go ahead, the European Commissioner responsible for competition, Joaquin Almunia, has warned.
Mr Almunia made the remarks on the back of an impending European Commission (EC) inquiry into allegations of the use of disguised State aid in the deal, in contravention of European competition rules.
According to a report by Italian newswire, ANSA, the EC had begun negotiations with the previous administration of Enrico Letta over the issue, which was first raised by Lufthansa (LH, Frankfurt International) earlier this month. The German carrier had objected to the deal on the grounds that Etihad, and therefore Alitalia, would be a beneficiary of "anti-competitive State aid."
However, with the recent toppling of Mr Letta's government and the ascension of rival Matteo Renzi to the hot seat, Mr Alumnia has warned that the road ahead would not be so easy. "Now we are waiting to see who will be interlocutor in the Renzi government in order to resume contact and continue the conversation," said Almunia. "Long and difficult discussions will be necessary," he added.
Last week, Alitalia management triumphantly announced an agreement with the airline's unions avoiding the laying off of some 1900 workers. Etihad had demanded an accord be reached as a precondition to its proposed deal.
