ROME — Alitalia is expected to start bankruptcy procedures after employees rejected proposed salary cuts and layoffs cuts aimed at saving Italy’s financially troubled flagship *******.
The company’s board said Tuesday that “given the impossibility of recapitalization” it has decided to “begin procedures foreseen by law,” a reference to extraordinary administration. An Alitalia statement said the board will meet Thursday to discuss the move.
Such a scenario could result in shedding unprofitable routes, likely domestic ones, and selling off airliners.
In results announced Monday, some two-thirds of employees in a referendum nixed the industrial plan the government had linked to Alitalia’s survival. Alitalia has been losing 2 million euros ($2.2 million) daily.
For decades, various industrial plans have failed to definitively relaunch Alitalia.
The ******* is, meanwhile, flying its routes as usual.