Alitalia has bought back a 75% stake in its MilleMiglia frequent flyer program from Etihad Airways, returning the Italian carrier to 100% ownership of its loyalty scheme. The Italian flag carrier paid E17m for the 75% stake, sources familiar with the situation told ATW, adding that the deal took effect Tuesday after several months of negotiations. In 2015, Abu Dhabi-based Etihad acquired 75% of MilleMiglia owner Alitalia Loyalty, valued at E112.5m, through its Global Loyalty Co. Alitalia retained the remaining 25%. At the time, Etihad was building up a portfolio of airline loyalty programs under GLC, saying they were a faster-growing and higher-margin business than the airline industry. However, Etihad has since backtracked on its airline equity investments, and Alitalia, which filed for bankruptcy in May 2017, is now preparing itself for new ownership.<br/>
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Korean Air on Wednesday was ordered to pay 20m won (US$17,750) to a flight attendant who was kicked off an aeroplane by the firm’s heiress in 2014 in the now infamous “nut rage” episode. The incident, where heiress Cho Hyun-ah angrily ejected the chief of the cabin crew from a taxiing aeroplane after being served macadamia nuts in a bag instead of a bowl, made global headlines. Park Chang-jin, the employee in question, earlier sued Korean Air claiming that the firm unfairly demoted him to an ordinary cabin crew position for speaking out about the incident to the media. He also sued the firm and Cho, seeking compensation for physical and psychological suffering. Cho, then the firm’s vice-president, had forced Park and another flight attendant to kneel before her to apologise. A Seoul court accepted part of Park’s argument and ordered Korean Air to pay him 20m won but dismissed the suit against Cho.<br/>
Indian Ocean carriers Air Austral and Air Madagascar have signed a “privileged partnership agreement” with Kenya Airways, firming up an MOU that was formed between the three airlines in July. Reunion-based Air Austral took an equity stake in Air Madagascar late last year, creating a strategic partnership between the two airlines. “With the signing today of this new partnership with Kenya Airways, the strategic partnership between Air Austral and Air Madagascar is taking on a new dimension,” Air Austral president and CEO Marie-Joseph Malé said. The agreement with Kenya Airways was signed in Nairobi Dec. 17, establishing Nairobi as a mainland Africa hub for the three airlines. The airlines will codeshare and coordinate their schedules for better connectivity. Kenya Airways and Air Madagascar will start codesharing on Nairobi-Antananarivo from Jan. 21, 2019. This will be joined by a second codeshare between Kenya Airways and Air Austral on Nairobi-Réunion, with an intermediate stop still to be confirmed.<br/>