Alitalia ‘seeking bankruptcy protection’

Monday, 01 Sep, 2008 0

Alitalia is to ask for court protection from its creditors so it can operate while going through a radical restructuring.

The move to seek bankruptcy protection comes as plans are drawn up to split the airline into two and sell a part in a new entity to another carrier, according to reports.

The request to seek bankruptcy protection would allow the airline breathing space to reach an agreement on how the loss-making business can proceed.

Budget airline Air One is being tipped as being a potential merger candidate, with profitable short haul routes split off into a new organisation.

Loss-making operations would remain under bankruptcy protection.

Air France/KLM and Lufthansa have both shown interest in investing in a ‘new-look’ Alitalia.

by Phil Davies 

 



 

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Phil Davies



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