Alitalia seeks bankruptcy protection

Italian airline Alitalia seeks bankruptcy protection in move to safeguard its survival

September 2008

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Alitalia the Italian airline has sought bankruptcy protection to help pave the way to ensure its survival.

Italy’s Prime Minister Silvio Berlusconi introduced special bankruptcy protection this week with some hastily introduced legislation protecting the stricken airline ahead of its restructuring programme which will look to break up the business with the best parts sold to Italian investors which will then provide new funding for the smaller airline.

The deal backed by the government will mean that thousands of jobs will go and it is also expected that Air France, KLM & Lufthansa will take a minority stake in the new company.

The smaller Italian budget airline Air One will be rolled into the new airline and the new combined businesses will then operate with a smaller fleet of planes concentrating on medium and long haul flights.

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