Proposal on Developing Partnership with Alitalia

Introduction Etihad Airways is currently considering a 49% investment in Alitalia S.p.A, an airline that causes losses in Italy. If the contract is successful, Etihad will be the largest shareholder of Alitalia (Clark, 2014). In this report, we first evaluate Alitalia's portfolio using PESTLE analysis. It then examines the consideration in a critical way by analyzing the advantages and disadvantages of buying a bet. The investment conditions for Etihad's Alitalia are debt restructuring and layoff (Flak and Goodman, 2014).

It began with Berlin Airlines, where Etihad purchased 29% of the stock and soon developed into a partner of 7 airlines of Etihad Airways. The main markets they serve are Jet Airways in India, Air Berlin in Europe, Alitalia, Virgin Australia, and so on. Some purchases are interesting; Virgin Australia and Albert Airlines are as strong as Jet Airlines. The difficulty of Alitalia may be worse than Air Berlin. After decades of loss, Alitalia may make a profit in 2017, but this optimism has declined since then. It is understood that Alitalia is currently losing more than 500,000 euros per day. In recent weeks the Italian government has participated in crisis negotiations between Alitalia Airlines and Etihad Airways and is dedicated to relieving airlines.

Important resources are invested in Alitalia, according to sources, the staff of Etihad Airlines had to give up on the bonus in 2016 to fund trendy New Alitalia uniforms . However, gambling has not yet been successful, but according to recent forecasts, Alitalia will not generate revenue for at least two to three years. Temporary dismissal and further investment in Abu Dhabi will help to reverse the situation. Another Etihad Airlines partner, Berlin Airlines, also has a history of trouble and seeks to provide a large amount of additional funds to Etihad Airways. In a particularly complicated deal designed to solve the complex rules of Europe, Etihad has purchased shares of Nikki Air, which is an Austrian leisure airline in Air Berlin, with a market value of four times that of Germany I put it in an airline company. EUR 0.3 billion

Air France - KLM / Alitalia - Northwest and KLM (earlier than either of SkyTeam's own three major airline partnerships), Delta Air Lines and Air France - inherit the relationship between Italy and the KLM Airline is a joint venture across the Atlantic Was established. The program coordinates transatlantic tasks such as ticket pricing, timetable, capacity, revenue. On January 27, 2012, the European Commission surveyed the impact of joint ventures on competition. Virgin Atlantic - On 11th December 2012, Delta Air Lines announced that it will invest 360 million dollars to acquire 49% of the shares of Virgin Atlantic which had previously been held by Singapore Airlines. As part of the contract, the two airlines share the cost and revenue of the flights of all the joint ventures operated by that airline.