Etihad expects to seal Alitalia deal soon, with job cuts in tow

[ROME] The chief executive of Etihad Airways said a deal to acquire nearly half of Alitalia could be wrapped up this month but warned that cuts would be needed to make the loss-making carrier profitable, prompting opposition from Italy's largest union.

Abu Dhabi's state-owned Etihad plans to buy 49 per cent of the loss-making airline in a deal that Rome hopes will bring Alitalia the money it needs to invest in a new strategy focused on more lucrative long-haul routes. "We want to guarantee the success and long-term viability of Alitalia or we wouldn't be here," Etihad CEO James Hogan said.

He said that while all parties were focusing on concluding the negotiations by the end of this month, the deadline could be extended if needed.