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ROME, Feb 11 (Reuters) - Air Italy's investors agreed on
Tuesday to place the struggling Italian carrier into
liquidation, the airline said citing "persistent and structural
market problems".
The decision was taken "unanimously", the carrier said, but
in a separate statement Qatar Airways, which holds a 49% stake,
said it would have been ready to support the relaunch and growth
of the airline.
"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," Qatar
said.
Formerly known as Meridiana, Air Italy is the country's
second-largest airline, behind Alitalia. Regional
carrier Alisarda, controlled by the Aga Khan, owns the remaining
51%.
Under current rules, foreign investors cannot own more than
49% of a European airline.
After heavily investing in Meridiana, the Aga Khan was not
ready to inject any further money in Air Italy, Italian daily la
Repubblica reported. The Aga Khan's representative was not
immediately available to comment.
Qatar Airways, which also has stakes in other international
carriers including China Southern and Cathay Pacific
, acquired its holding in loss-making Air Italy in 2017
and rebranded it, transforming it into a long-haul airline.
Last year, Air Italy said it expected to be profitable
"soon" even though the airline also said it had been hurt by the
grounding of Boeing's troubled 737 MAX.
The Sardinia-based airline had launched a five-year business
plan which aimed at reaching 10 million passengers by 2022, from
the 2.4 million carried so far.
But the airline's expansion came under scrutiny in
Washington, where lawmakers said its U.S. routes flouted a deal
between the largest U.S carriers and Gulf airlines not to add
new flights to the U.S. domestic market.
Under the liquidation process - legally different from a
bankruptcy - suppliers and staff will be paid off, with no
outstanding debt left at the end of the process.
Air Italy said that flights would continue until Feb. 25
while flights booked for later dates would be reimbursed or
re-booked on to other carriers.
Earlier on Tuesday, Italy's transport minister Paola De
Micheli had called on the airline to hold back from taking any
decision before meeting government ministers.
Rome is already grappling with a prolonged crisis over
Alitalia, which has been through two previous
unsuccessful rescues and is now being managed by a
state-appointed administrator as the government seeks investors
to relaunch it.
Independent aviation consultant John Strickland said the
Italian domestic market was very competitive and dominated by
low-cost carriers.
"Alitalia is being kept alive politically so that doesn't
make life easy for other airlines. There is quite significant
long-haul competition especially to the U.S.,” he said.
(Reporting by Francesca Landini and Giulia Segreti.
Additional reporting by Alexander Cornwell in Dubai
Editing by Jane Merriman)
