Abu Dhabi's Etihad in talks to divest Air Seychelles stake (updated)

Air Berlin

14/04/2021 12:24

(Writes through, adds quotes, detail, context)
    DUBAI, April 14 (Reuters) - Etihad Airways is in talks to
divest its 40% stake in Air Seychelles, the small Indian Ocean
carrier’s Chief Executive Officer Remco Althius said on
Wednesday.
    The move would leave the Seychelles government as the sole
shareholder of Air Seychelles as the Abu Dhabi carrier further
unwinds its failed strategy of investing in other airlines.
    "It's been formalised as we speak. It's happening right
now," said Althius, a former Etihad executive, during an online
event by aviation consultancy CAPA.
    Etihad, which did not immediately respond to a request for
comment, bought the minority stake in 2012, investing $20
million in addition to providing a $25 million loan.
    The Seychelles government plans to buy the stake at a
nominal value, according to a December regulatory filing.
 urn:newsml:reuters.com:*:nL8N2JI3KG
    Etihad spent billions of dollars buying minority stakes in
airlines in Europe, Australia and India in a bid to catch up
with state rivals Emirates of Dubai and Qatar Airways.
    The strategy eventually unravelled with many airlines
struggling financially, while Etihad, restricted to minority
ownership, often had limited control over management. 
    Etihad sold its stake in small European regional carrier
Darwin Airline in 2017, while minority-owned Air Berlin, Italy's
Alitalia and India's Jet Airways have all gone insolvent.
    Etihad is now pursuing a smaller pre-pandemic strategy to
shrink its operations and focus less on connecting travel.

 (Writing by Alexander Cornwell; Editing by Jason Neely and Mike
Harrison)
 ((Alexander.Cornwell@thomsonreuters.com;))