Alitalia Cancels $5 Billion Airbus A350 Order
Alitalia, the troubled Italian flag carrier, quietly cancelled a $4.7 billion order for new aircraft with Airbus last month.
Airbus reported the cancellation in a quarterly report and said that the order had come from Aircraft Purchase Fleet, a Dublin-based leasing firm that was set up to fund new aircraft for Air One, which later merged with state-controlled Alitalia.
The airline originally ordered 12 Airbus A350-800s, the smallest version of the airframe manufacturer’s new wide-body. At the time it was placed in 2008, it was valued at $4.7 billion.
Alitalia, which was bailed out by the Italian government at the end of 2013, is currently in advanced talks with Abu Dhabi-based Etihad about a possible investment in the airline.
Etihad has reportedly been seeking promises of cost cutting by Alitalia in return for an investment.
(Photo: Accura Media Group)