Italy’s state airline Alitalia goes bust . . . again!

Alitalia has filed for bankruptcy for the second time in a decade after workers at the Italian airline rejected wage cuts linked to a £1.7billion rescue.

The loss-making carrier, which has a history of financial trouble, said shareholders had voted unanimously to file for special administration after employees rejected a plan to cut jobs and salaries to secure funds.

The airline said that shareholders and Gulf carrier Etihad Airways, which owns 49 per cent of the firm, had been ‘committed to recapitalise and finance the plan with €2billion, but that without the approval of workers it could not go ahead’.

 Alitalia last filed for administration in 2008. It had been hoped Etihad’s £1.5billion stake purchase in 2014 would help transform the company into a five-star operator.

But it has lost its standing in Italy to budget rivals Ryanair and EasyJet.

Etihad said it was ‘disappointed’ Alitalia had filed for bankruptcy.

The Italian government, which has invested more than £5.9billion into the airline over the last decade, has already ruled out a bailout.

Source: Italy’s state airline Alitalia goes bust . . . again! | Daily Mail Online