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Alitalia to enter bankruptcy proceedings | Alitalia to enter bankruptcy proceedings |
(about 5 hours later) | |
Italy's troubled flagship airline Alitalia will formally request to enter bankruptcy proceedings, after workers rejected a restructuring plan. | Italy's troubled flagship airline Alitalia will formally request to enter bankruptcy proceedings, after workers rejected a restructuring plan. |
The company said its flight schedule would continue to operate as planned, while administrators examine whether the firm can be turned around. | The company said its flight schedule would continue to operate as planned, while administrators examine whether the firm can be turned around. |
Alitalia has received more than 7bn euros (£5.9bn) from the Italian state over the last decade. | Alitalia has received more than 7bn euros (£5.9bn) from the Italian state over the last decade. |
But without further support, it may end up permanently grounded. | But without further support, it may end up permanently grounded. |
Last week, airline employees voted against a plan to cut jobs and salaries that would have allowed it to secure new funds. | Last week, airline employees voted against a plan to cut jobs and salaries that would have allowed it to secure new funds. |
Alitalia said in a statement that Italian shareholders and Etihad, the Abu Dhabi airline that owns 49% of Alitalia, had been "committed to recapitalise and finance the plan with 2bn euros". | |
But without the approval of workers, the plan could not go ahead, the airline said. | |
Rome has given Alitalia a 400m euro bridging loan to allow it to keep operating during the bankruptcy process. | |
But Italy's finance minister has ruled out renationalising, or providing further funds for, the troubled carrier. | But Italy's finance minister has ruled out renationalising, or providing further funds for, the troubled carrier. |
And public opinion seems to be behind the decision. Italians have taken to social media in recent days calling for politicians to resist bailing the airline out again. | |
An opinion poll published on Friday suggested 77% of Italians believe the airline should be left to fail. | |
However, with an election looming next year, politicians may be reluctant to see Alitalia's 12,500 employees lose their jobs. | However, with an election looming next year, politicians may be reluctant to see Alitalia's 12,500 employees lose their jobs. |
Alitalia's board said that because of "the serious economic and financial situation of the company, of the unavailability of the shareholders to refinance, and of the impossibility to find in a short period of time an alternative", they had decided to proceed with the filing for extraordinary administration. | Alitalia's board said that because of "the serious economic and financial situation of the company, of the unavailability of the shareholders to refinance, and of the impossibility to find in a short period of time an alternative", they had decided to proceed with the filing for extraordinary administration. |