Alitalia board agrees to Etihad's cash offer

[NEW YORK] Facing the prospect of bankruptcy for the second time in five years, the board of Italy's troubled flagship airline, Alitalia, has agreed to a strategic partnership that would give a stake of up to 49 per cent to the state-owned Abu Dhabi carrier Etihad Airways.

With no other viable alternative, and the company's cash reserves dwindling, Alitalia's chief executive, Gabriele Del Torchio, told reporters in Rome that the board had voted in favour of Etihad's offer.

Italy's transport minister has said the offer includes up to 1.25 billion euros (S$2.12 billion) in new investments in Alitalia over the next four years.