United Arab Emirates-based airline Etihad has agreed to buy a 49% stake in Alitalia.

The carrier has confirmed that they have agreed "the principal terms and conditions" of the transaction whereby Etihad will acquire the equity stake in the Italian airline.

The airlines say they will now finalise the transaction as soon as possible. The conclusion of the deal is subject to regulatory approvals.

Etihad has a fleet of 88 aircraft and operates more than 1,400 flights per week. It serves 84 passenger and cargo destinations in the Middle East, Africa, Europe, Asia, Australia and North America.

It currently has a stake in two different airlines - owning nearly 30% of Airberlin and 40% of Air Seychelles.

Etihad flies a Dublin-Abu Dhabi service 10 times a week, and has connections to 45 further destinations in the Middle East, Africa and Asia.