Alitalia considers Air Malta purchase

Alitalia says it is considering buying a 49% stake in Air Malta. Alitalia, which is controlled by Etihad Airways, signed a memorandum of understanding Wednesday with the Maltese govt to launch due diligence on a possible deal. Alitalia CE Cramer Ball said any deal would not hurt Alitalia's 3-year re-launch, which includes the goal of returning to profit by 2017. Malta tourism minister Edward Zammit Lewis said Air Malta will cease talks with other airlines, and that financial details of a possible deal are still to be determined. No deadline has been set. Loss-making Air Malta is in the last year of a 5-year restructuring plan agreed with the EC in return for approval of E130m in state aid. <br/>