Air One (AP, Rome Fiumicino) is set to be phased out as a brand with effect from October 1. According to a internal statement made public by Italy's La Stampa newspaper, the airline said its operations thereafter would be taken over by parent, Alitalia (AZ, Rome Fiumicino).

The move comes after Alitalia sealed a EUR1.758billion (USD2.357billion) investment deal with Etihad Airways (EY, Abu Dhabi Int'l) earlier this month. Among the required terms of the agreement are a slimming down of the struggling Italian national carrier's fleet, workforce and operations.

"The Alitalia Group, in the pursuit of sustainability and as part of a process of streamlining its medium-haul fleet during the upcoming winter season, has decided to operate the services presently offered with the Air One brand, primarily with its own brand Alitalia," the statement read. "Consequently, beginning October 1, together with the usual closure of the summer season routes, most of the connections currently operated by Air One will be operated under the Alitalia brand and aircraft."

Air One intends to close its Catania, Palermo, and Venice Marco Polo bases on September 30 followed by Milan Malpensa, Verona, and Pisa which will also be closed down by October 30.

Following its merger with Alitalia in August 2008, Air One was repositioned as Air One "Smart Carrier" - Alitalia's budget subsidiary operating a fleet of nine A320-200s to 35 destinations in 12 countries.