Alitalia buys back ownership of frequent flyer program
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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Alitalia buys back ownership of frequent flyer program
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/>
