Alitalia

About Alitalia

Alitalia, the Italian flag carrier, filed for bankruptcy in May 2008. Alitalia had lost money for years due to political interference, inefficient operations, and competition from low cost carriers. The Italian government arranged a rescue by a consortium of Italian investors called Compagnia Aerea Italiana. Air France KLM took a 25 percent stake. The restructured airline continued losing money. Etihad Airways acquired a 49 percent stake in 2014 but could not turn Alitalia around. Alitalia filed for bankruptcy again in May 2017. The Italian government provided loans to keep the airline flying. In 2021, Alitalia was replaced by ITA Airways, a new state owned airline. The Italian government sold 56 percent of ITA to Lufthansa in 2024.