Alitalia Files for Bankruptcy for Second Time In a Decade

By Paul Riegler on 2 May 2017
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An Alitalia aircraft in Amsterdam

An Alitalia aircraft in Amsterdam

For the second time since 2008, Alitalia filed for bankruptcy, having already cost Italian taxpayers an estimated €7 billion ($7.6 billion) since the 2008 restructuring.

The bankruptcy administrator now has to turn the carrier around within 180 days, sell it, or liquidate its assets.

The news came after talks with unions about possible jobs cuts collapsed.

With over 12,400 employees, the airline is one of the country’s largest employers and operates 120 planes.

The Italian government ruled out the possibility of a third bailout but gave the flag carrier a short-term lifeline with a €600 million six-month bridge loan.

“We wanted to protect ticketed passengers and Alitalia’s workers until a suitable buyer is found,” said Graziano Delrio, the country’s transportation minister, to reporters after a cabinet meeting, noting he wants to preserve “the value of a company that has such a legacy brand and is so important for domestic connections.”

Alitalia’s largest investor is Etihad Airways, which has a 49% stake. James Hogan, Etihad’s CEO, said that the airline required “fundamental and far-reaching restructuring to survive and grow in future” but noted that, “Without the support of all stakeholders for that restructuring, we are not prepared to continue to invest.”

(Photo: Accura Media Group)

Accura News

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