Alitalia and Etihad Airways exchanged a Memorandum of Understanding (MOU) that confirms the airlines’ intention to operate a codeshare agreement from the start of the Northern Summer season in April 2010, subject to government approvals.

This week saw the first anniversary of the launch last January of the ‘new Alitalia’, the airline created by private investors out of bits of the old Alitalia, Air One and Volareweb.

Mounting losses have forced Italian carrier Alitalia to pull out from India and China even as global carriers are spreading their wings over the lucrative South Asian sectors in a big way.

Alitalia general manager for India Tommaso Fumelli said, "The move is in full coherence with recent negotiations held with Air France-KLM group" which Alitalia is planning to join.

"We have decided to temporarily suspend operations to India and China starting with the next summer schedule. We will evaluate the re-opening of India operations once Alitalia profitability conditions will be reinstated," Fumelli told IANS.
Alitalia currently operates a total of 14 daily flights connecting Milan with Mumbai and New Delhi.

Fumelli said the decision was taken on the current route performance, fleet plan and the future set up of the network.

"Alitalia will focus more on North and South America, Japan and Mediterranean countries," he said while explaining the reasons to withdraw from India and China.

Varada Bhat/Indo-Asian News Service/Hindustan Times

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