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Alitalia will formally request to enter bankruptcy proceedings, after workers rejected a restructuring plan.

Italy’s troubled flagship airline said its flight schedule would continue to operate as planned, while administrators examine whether the company can be turned around.

Alitalia has received more than 7 billion euros from the Italian government over the last decade.

However, without further support, the airline may end up permanently grounded.

Image source Wikimedia

Last week, Alitalia employees voted against a plan to cut jobs and salaries that would have allowed it to secure new funds.

The airline said in a statement that Italian shareholders and Etihad, the Abu Dhabi airline that owns 49% of Alitalia, had been “committed to recapitalize and finance the plan with 2 billion euros”, but that without the approval of workers, it could not go ahead.

Rome has given Alitalia a 400 million-euro bridging loan to allow it to keep operating during the bankruptcy process.

However, Italy’s finance minister has ruled out renationalizing, or providing further funds for Alitalia.

Public opinion seems to be behind the decision. Italians have taken to social media in recent days calling for politicians to resist bailing the airline out again. An opinion poll published on April 28 suggested 77% of Italians believe the airline should be left to fail.

However, with an election looming in 2018, politicians may be reluctant to see Alitalia’s 12,500 employees lose their jobs.

Alitalia’s board said that because of “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”, they had decided to proceed with the filing for extraordinary administration.

Italian cash-strapped budget airline Wind Jet has suspended all its flights, leaving hundreds of passengers stranded.

At Rome’s Fiumicino airport, some 200 Israeli nationals – who had been due to fly to Tel Aviv – spent the night at the terminal.

Another five flights to destinations across Italy were cancelled as well.

Italian cash-strapped budget airline Wind Jet has suspended all its flights, leaving hundreds of passengers stranded

Italian cash-strapped budget airline Wind Jet has suspended all its flights, leaving hundreds of passengers stranded

The Sicily-based firm is now close to losing its operating licence after takeover talks with Alitalia failed.

Further chaos is expected as some 300,000 passengers across Italy have booked tickets with Wind Jet in coming weeks.

Alitalia – Italy’s national airline – says it will help Wind Jet passengers to find alternative flights, but only on payment of supplements.

The country’s aviation authorities have set up a crisis centre to help stranded passengers at the beginning of the busiest holiday week of the year.