Alitalia Cancels $5 Billion Airbus A350 Order

By Paul Riegler on 16 April 2014
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Alitalia planes in Rome

Alitalia planes in Rome

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)

Accura News

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