Alitalia Starts Bankruptcy Process as Etihad Cuts Off Funds
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Alitalia SpA started bankruptcy proceedings for the second time in a decade, throwing the survival of Italy’s flag carrier in doubt after the airline failed to fend off budget rivals.
Shareholders voted unanimously to file for insolvency administration, the airline said in a statement on Tuesday.
During a cabinet meeting convened in the evening, the Italian government approved the start of special administration and appointed Luigi Gubitosi, Enrico Laghi and Stefano Paleari as administrators. Gubitosi was appointed to Alitalia’s board in March and would have been made executive chairman if the recapitalization had gone through. Under Italian law, the government is tasked to appoint supervisors to turn around the company or order its liquidation…
Alitalia Starts Bankruptcy Process as Etihad Cuts Off Funds
