Alitalia stake decision soon: Etihad

[DUBAI] Etihad Airways said it will decide within 30 days whether to buy a stake in ailing Italian airline Alitalia as the Abu Dhabi flag carrier continues its streak of purchases to funnel traffic through the Middle East.

Etihad is in the final stage of reviewing Alitalia's books to decide on an investment, chief executive officer James Hogan and his Italian counterpart Gabriele Del Torchio said on Sunday. Italian Prime Minister Enrico Letta, speaking in Abu Dhabi, said his government, which has helped prop up Alitalia, wouldn't impose conditions for an agreement.

"This would definitely be a shot in the arm for a carrier that has struggled for a while now," said Sidanth Rajagopal, a Dubai-based partner at Clyde & Co. "Getting the best practices of Etihad and the money will be good for the airline."