Airliners-India.com

The_Goat

http://www.scotsman.com/business/etihad-airways-may-take-stake-in-italy-s-alitalia-1-3062106

Wow. EY on a buying spree!

Last count, EY already have stakes in Air Seychelles, Air Berlin, Aer Lingus, Virgin Australia, Jet Airways and Air Serbia (JAT).
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I don't know which is the more pampered bunch : AI's widebodies (the aunties) or Jet's widebodies (the planes).
-Jasepl

Nimish · Posted: Mon Aug 26, 2013 4:37 pm Post subject:

This seems to be more of AZ pursuing EY - with the blessings of AFKL who have their own empty wallet to worry about. Given the unions/ pensions/ hassles with AZ, EY will need to be cautious about not taking on more than they can chew.
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We miss you Nalini!

The_Goat · Posted: Mon Aug 26, 2013 5:22 pm Post subject:

Well, all of EY's acquisitions have been either close to bankruptcy or badly in need of investment. Alitalia is no different.

I think what EY is doing is very clever. They are acquiring minority stakes in several operators in various geographies to expand their own network, instead of flying everywhere with their own metal like EK did. EY probably have negotiated a say in management affairs in return for the investment which would lead to improvement of the services. The minority stake would ensure that any debt that the acquiree has wouldn't fall entirely on EY's shoulders.

I can see EY acquiring stake in a North American carrier soon. Canada's WestJet is a very good target.
_________________
I don't know which is the more pampered bunch : AI's widebodies (the aunties) or Jet's widebodies (the planes).
-Jasepl