Last Flight

Alitalia, the largest Italian airline, has gone into administration.

The procedure began after the company failed to reach an agreement with workers regarding an anti-crisis plan. It included 2 bln euros recapitalization, cutting jobs and salaries.

The airline will now be managed by administrators. They will try to save the company by selling assets, scaling down business and cutting jobs. If, within two years, the company fails to restore solvency, it will, most likely, be liquidated.

Over the last decade, the company received more than 7 billion euros from the state but in vain. Opinion polls show that 77% of Italians are against further support, including bailout through nationalization. If the company can't improve its financial position, it should be allowed to fail.

This means that the company as we know it is coming to its end.

Alitalia was founded in 1946. It is Italy's largest air carrier and the fifth largest airline in Europe.