Alitalia to start bankruptcy proceedings

Italian airline Alitalia said on Tuesday that it will formally request to enter bankruptcy proceedings after its employees opposed a restructuring plan.

Alitalia said a vote by its staff against pay and job cuts meant it would not be able to implement the relaunch and restructuring of the company.

Italian shareholders and Gulf-based airline Etihad - which owns 49% of the company - were committed to recapitalise and finance the plan with €2m, but this was based on the industrial plan being accepted by staff in a referendum.

"The board of directors, which convened after the shareholders meeting, having acknowledged 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, has decided unanimously to proceed with the filing for 'amministrazione straordinaria' (extraordinary administration) in compliance with the Italian law."

Alitalia said its flight schedule will continue to operate as planned.