Air Italy has suspended operations effective immediately.

by voyazor
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Air Italy’s shareholders have opted to place the airline in liquidation after an emergency meeting on Tuesday.

Italy’s second largest carrier had suffered two years of heavy losses – the airline reportedly lost €164 million in 2018 and €200 million in 2019.

Hoping to replace Italy’s bankrupt flag carrier Alitalia, Air Italy went through rapid expansion, doubling its fleet and operating long-haul destinations including New York, Miami, Delhi and Los Angeles.

The Italian Minister of Infrastructure and Transport, Paola De Micheli, was less than impressed with the decision, saying: “Deciding to liquidate a company of this size is unacceptable without first informing the government and without seriously considering possible alternatives.”

The news comes two and a half years after Qatar Airways took a minority 49% shareholding in the airline.

“Even with the changing competitive environment and the increasingly difficult market conditions severely impacting the air transport industry, Qatar Airways has continually reaffirmed its commitment, as a minority shareholder, to continue investing in the company,” Qatar Airways said in a statement.

“Qatar Airways was ready once again to play its part in supporting the growth of the airline, but this would only have been possible with the commitment of all shareholders.”

In positive news, all Air Italy flights between 11-25 February will be operated by other carriers without any changes to the schedule.

Passengers with bookings further ahead will reportedly receive full refunds.

From 11 to 25 February2020 inclusive, all Air Italy flights will be operated by other carriers at the times and on the days previously scheduled; all passengers who booked flights (outward or return) after 25 February 2020 will be re-protected or fully refunded.

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