This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-39780604
The article has changed 3 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| Alitalia slides into administration | |
| (about 1 hour later) | |
| Italy's troubled flagship airline Alitalia has gone into administration after the Italian government formally approved the move. | |
| 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". | 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. | But without the approval of workers, the plan could not go ahead, the airline said. |
| On Tuesday, Italy's government gave the go-ahead for Alitalia to enter administration. | |
| It also approved a 600m euro bridging loan to allow Alitalia to keep operating during the administration process, a spokesperson for Alitalia said. | |
| The government has called for administrators to find prospective buyers as quickly as possible, while also minimising the amount of public money spent on the airline. | |
| Survival at stake | |
| James Hogan, chief executive of Etihad, said: "We have done all we could to support Alitalia, as a minority shareholder, but it is clear this business requires fundamental and far-reaching restructuring to survive and grow in future. | |
| "Without the support of all stakeholders for that restructuring, we are not prepared to continue to invest." | |
| Italy's industry minister last week opposed 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. | 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. | 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. |