Alitalia starts bankruptcy process

Carrier given cash injection to fly for six months
Alitalia has started bankruptcy proceedings, applying to be placed under administration for the second time in less than a decade. This now starts a process that will decide the fate of the cash-bleeding airline – a sell-off, restructuring, or simply stopping completely.
The board of the Italian flag carrier made the decision yesterday, more than a week after employees rejected a rescue plan. For now, flight schedules remain unchanged.
The government has appointed three commissioners to judge whether Alitalia, which is losing about €1 million a day, can be restructured, sold or liquidated. It has also given the airline a temporary loan of €600 million, which will keep it alive for six months.
James Hogan, chief executive of Etihad Airways, which has a 49% stake in Alitalia, said the Italian airline required “fundamental and far-reaching restructuring to survive and grow in future”.
He added: “Without the support of all stakeholders for that restructuring, we are not prepared to continue to invest.”


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