The largest Italian airline, Alitalia, went into bankruptcy today to avoid bankruptcy, and the Italian government granted it a loan of 600 million euros so that it can operate until a new buyer is found.
The board of directors of Alitalia, which has gone bankrupt for the second time in 10 years, announced today that it had no choice but to request the appointment of a receiver after employees rejected a restructuring plan that would have enabled new investments.
The board announced that such an outcome requires the reorganization of the company in order to enable the planned investment of two billion euros by the minority shareholder, the Etihad company from the United Arab Emirates, and a consortium of Italian investors that owns 51 percent of Alitalia.
The Italian government today appointed three receivers to lead Alitalia during a six-month reorganization period.
The Italian minister for economic development, Carlo Calenda, said that the goal is to find buyers in that short period, while preserving destinations and jobs, as well as to "spend government money as little as possible."
Alitalia's board of directors previously expressed "deep regret" over the decision of employees who voted against the restructuring proposal, which was reached through government-mediated negotiations between unions and company management and which provided for the elimination of fewer jobs and smaller wage cuts than previously planned.
Alitalia, which is still operated by Etihad, continues to insist that flights are running as scheduled.
In 2008, while it was owned by the state, Alitalia requested the appointment of a receiver, but avoided liquidation because the then Italian Prime Minister Silvio Berlusconi gathered a group of Italian investors who participated in the privatization of the company. Etihad bought 49 percent of Alitalia shares in 2014.
Alitalia lost its importance when the European market in the field of air transport was liberalized, since it could not withstand the competition of low-cost airlines.
Another trouble for Alitalia is the deal that Qatar Airways made to take over 49 percent of the second largest Italian airline, Meridiana.
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