After worked rejected proposed pay reductions which were linked to a 2 billion Euro recapitalization plan, the shareholders have placed the airline under special administration.
The airline continues to fly while attempts are made to get it back on its feet. Special administration means that the airline has 6 months to get back on track, with a possible 2 month extension to the time. The airline has been in a similar predicament in the past and has been bailed out by various sources, but none of them seem to have made much of a difference to the airline’s bottom line. A possible cash injection might see Alitalia continue to fly, if not, it may be goodbye to this iconic brand. Time will tell.