Alitalia said Friday it has sought bankruptcy protection, taking the first step in a plan to reshape Italy’s debt-laden national carrier.
The company said in a statement that its board had asked the government to appoint an administrator and had declared insolvency to a Rome court.
Alitalia has been losing $3 million a day — hurt by labor unrest, competition from budget airlines and high fuel prices. Its shares have been suspended from trading since June.
The airline said its net debt at the end of July amounted to $1.73 billion. The figure does not include a $442 million loan that the government made in April to keep the cash-strapped carrier flying.
The government has been secretive about efforts to save the carrier, but the plan reportedly calls for the breakup of Alitalia into two parts. The profitable assets would be taken over by Italian investors ready to inject $1.5 billion into the airline. The other assets would be spun off into a separate company for liquidation
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