The rationale behind the acquisition of Alitalia by Etihad

This paper aims to understand the rationale behind the acquisition of Alitalia by Etihad and if Alitalia fits into Etihad's strategy. It will analyse these two airlines from very different perspectives to contextualise this acquisition in regard to Etihad's strategy. In particular the research develops the arguments supporting the thesis that Alitalia's acquisition is a strategic acquisition that will allow Etihad to take advantage of Alitalia's strength in North and South America and to increase indirectly its operations in China while strengthening its footprint in Europe and in Italy, the third biggest European aviation market. The new Alitalia will be focus more on long length routes, becoming the ambassador of the ¿Made in Italy¿, as a symbol of high quality. In 2017 Alitalia should be profitable. Nevertheless several risks remain.