Abu Dhabi’s state-owned Etihad Airways has confirmed it has agreed terms and conditions for its purchase of a 49 per cent stake in Alitalia. In a joint statement, the airline said it would now move to finalise the deal for the Italian flag-carrier “as soon as possible”.

Etihad Airways president James Hogan has confirmed the airline has entered the final phase of a due diligence process about a possible investment by Etihad in Italian flag-carrier Alitalia. During the next 30 days both companies and their advisors will determine how a common strategy can be developed which meets the objectives of both parties.

Codeshare partners Alitalia and Etihad Airways have announced an increase in direct Rome-Abu Dhabi services from four flights per week to five, in addition to an expansion of codeshare destinations for customers of each airline.

The United States Department of Transportation has fined the Italian air carrier Alitalia $125,000 for providing inaccurate information on its website regarding its policy on compensation to passengers on delayed and cancelled flights. While Alitalia’s website displayed a copy of the carrier’s General Conditions of Carriage as required by department rules, the carrier claimed a right to refuse such compensation, citing provisions in its tariff that exempted travel from the United States from the terms of the GCC.

Italian carrier Alitalia has confirmed chief executive Andrea Ragnetti has resigned from the role. Chairman Roberto Colaninno will be the interim chief executive until the board appoints a replacement.

Italy’s flag carrier Alitalia has begun direct services from Rome to Abu Dhabi, following last August’s announcement that the Italian carrier would fly four weekly return Airbus A330 services between the two capitals. Alitalia are operating the new flights in conjunction with codeshare partner Etihad Airways.