26 JUNE 2017


© 2022 Business Travel News Ltd.

Article from BTNews 26 JUNE 2017

Alitalia US bankruptcy filing

Italy’s flag carrier goes to court today (26 June) for a hearing into its application for so-called Chapter 15 bankruptcy protection in the US in a bid to keep its leases at New York JFK. Alitalia is currently surviving on an Italian government loan as it seeks buyers.

The airline had been granted a temporary restraining order until Friday (23 June) offering it a short period of protection from creditors. Chapter 15 allows foreign companies protection as they undergo insolvency proceedings in their own countries.

Officials say the temporary relief will allow Alitalia to continue its operations to the US, which the airline says are "critical to its overall operations".

In a filing, the airline said without protection it could lose its terminal lease at JFK, putting at risk flights that account for 15% of its revenues. The filing also said that the airline faced the imminent termination of its telephony and internet services.

Alitalia entered into special administration in Italy on 2 May with liabilities of around €2.3bn ($2.5bn) after a restructuring plan was rejected by staff. It currently offers nine flights daily flights to US destinations including New York, Boston, Chicago, Los Angeles and Miami.


Index/Home page

OUR READERS' FINEST WORDS (All times and dates are GMT)

All comments are filtered to exclude any excesses but the Editor does not have to agree with what is being said. 100 words maximum