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Alitalia starts bankruptcy process

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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.”
Reuters

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