UAE national carrier Etihad Airways said it has won approval from the European Commission for its purchase of 49 per cent of Alitalia, part of a €1.76-billion ($2.19 billion) rescue plan for loss-making Alitalia.

The Abu Dhabi carrier had in August announced the strategic partnership with Alitalia.

Etihad said it got the merger clearance from the European Commission under EU Regulation No. 139/2004.

Following the completion of its review, the European Commission today confirmed that the partnership complies with the European regulations on competition. In line with previous cases, the airlines undertook commitments aimed at facilitating the entry of new airlines on the Rome to Belgrade route, the airline said in its report.

The parties continue to work together with a view to completing the transaction before the end of the year, it added.

Etihad president and CEO James Hogan, said: "We are delighted to be able to move forward with this process and look forward to a positive outcome and the final conclusion of our transaction with Alitalia."

"An equity investment in Alitalia will be beneficial not only for the both airlines, but, more importantly, it will give more choice and broader travel opportunities to business and leisure travellers into and out of Italy," he added.

Gabriele del Torchio, the chief executive of Alitalia, described the EU approval as an excellent outcome for loss-hit airline.

"This investment will provide financial stability and a foundation for impressive long-term growth for the company and for the travel and tourism industry in Italy, in which Alitalia is a fundamental player," he stated.

"Today’s decision by the EU approves the largest-ever foreign investment in Alitalia and demonstrates huge confidence in the future of the national carrier," he added.-TradeArabia News Service