Last updated: 8 August, 2014

Etihad and Alitalia sign shareholder alliance

Emirates airline Etihad Airways and Alitalia signed a deal on Friday for Etihad to become a shareholder in the Italian carrier, helping it to pull away from crisis, AFP reporters witnessed.

The shareholder alliance was signed by the head of Etihad Airways, James Hogan, and the chief executive at Alitalia, Gabriele Del Torchio.

The deal is the fruit of months of difficult negotiations over deep financial and staff problems at Alitalia.

The Italian airline has narrowly survived a succession of financial crises and is now likely to be restructured.