EY-AZ deal: more options, cheaper flights

THE South African travel
industry has welcomed
Etihad’s acquisition of a
49% stake in Alitalia, saying
it would boost connectivity
to Europe for South African
travellers and could
potentially bring down fares.
The acquisition is
believed to be Etihad’s
biggest investment in a
foreign carrier to date. The
conclusion of the deal is
subject to final regulatory
approvals.
According to John Ridler,
spokesperson for Cullinan
Outbound Tourism, an
increase in competition on
the route through the Middle
East will bring about some
positive changes for SA
travellers. “Hopefully we will
see more favourable fares
to Italy via Abu Dhabi on
Eithad.”
Butch Williams, airline
strategy manager of
Pentravel, says Italy is one of
Pentravel’s top destinations
in Europe. He says although
there are many available
options with the likes of
Emirates, Lufthansa, Air
France, etc., the demand
on availability during peak
season often results in
higher fares. “Any additional
flight options should make a
difference,” he says.
Theresa Szejwallo, md
of The Travel Corporation,
agrees: “Italy is our single
most popular destination
across Trafalgar, Insight
Vacations and Contiki. It
would be beneficial if Etihad
could increase its daily
flights from Abu Dhabi to
Rome.”
The acquisition agreement
will undoubtedly bring about
an increase in connections
for SA travellers, says Rod
Rutter, coo of XL Travel.
He says the investment will
give Etihad access to the
Italian market and potentially
deepen its foothold in central
and Eastern Europe. Rod
says the deal will also revive
Alitalia and, with the right
funds and management,
Alitalia could become a
powerful force in Europe.
Alitalia ceo, Gabriele Del
Torchio, hinted at Alitalia’s
future as a key player in
the European market:
“This investment will
provide financial stability
and confirms Alitalia’s
key strategic role as an
infrastructure player in the
travel and tourism industry in
Italy for long-term growth.”