Alitalia said Tuesday it would start insolvency proceedings after workers rejected its latest rescue plan, making it impossible for the loss-making Italian airline to secure funds to keep its aircraft in the air.
Alitalia was seeking worker backing to unlock fresh funds from shareholders and launch an ambitious restructuring plan, centered around a revamp of its business for short and medium-haul flights and additional long-haul routes.
The commissioner would then prepare industrial and financial plans for a rapid revamp of Alitalia, either as a standalone company or through a partial or total sale, or else put it on course for liquidation.
Alitalia has been bailed out by Italian governments and private investors repeatedly over the years, rarely requiring strong industrial strategies in return.