European Commission approves Etihad acquisition of Alitalia, to give up Rome and Belgrade slots

European Commission approved (14-Nov-2014) Etihad's proposed acquisition of joint control over Alitalia, subject to conditions. The decision is conditional upon Alitalia and Etihad's commitment to, in particular, release slots to a new entrant at Rome Fiumicino Airport and Belgrade Nikola Tesla Airport. Currently Alitalia and Air Serbia, the latter being jointly-owned by Etihad, are the only carriers offering Rome-Belgrade service leading to concerns of higher prices and a loss of service quality. The transaction will consist of the creation of a JV, New Alitalia, to receive Alitalia's aviation business as a going concern. Etihad will acquire sole control of Alitalia Loyalty, which manages Alitalia's frequent flyer programme. Alitalia and Etihad agreed to release two daily slot pairs at both Rome-Fiumicino and Belgrade airports and provide further incentives, such as a special prorate agreement, a fare combinability agreement, an interline agreement and access to their frequent flyer programme to new entrants. The Commission therefore concluded that the proposed transaction, as modified by the commitments, would not raise serious competition concerns. This decision is conditional upon full compliance with the commitments. [more - original PR]