Alitalia Files For US Bankruptcy Protection, Preventing JFK Ejection
This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.
Alitalia has received temporary bankruptcy protection from a US court just 24 hours before the airline was due to be ejected from Terminal 1 at New York’s JFK airport, according to a court filing by the airline.
Judge Sean Lane of the US Bankruptcy Court in the Southern District of New York issued a temporary restraining order until at least June 23, allowing Alitalia to continue to operate at JFK and in the US despite its financial condition. The beleaguered flag carrier of Italy began bankruptcy procedures in its home country last month after its unions rejected a €2 billion recapitalization plan that would have resulted in pay cuts and layoffs.
According to FlightGlobal, Alitalia said in its Chapter 15 US bankruptcy filing that the operator of JFK’s Terminal 1 had informed the airline that its lease and contract at the airport would be terminated on June 13 due to a failure to pay its bills. The carrier’s US telephone and internet provider had also given notice of its intention to cut off service as of June 20 if its invoices remained unpaid. The restraining order issued by the court prevents both actions from taking place for the time being.
The carrier noted in its filing that its operations at JFK Airport were vital to its finances, stating that 15% of its global revenues are generated from its operations to and from New York and 30% of its overall revenues from its nine flights to and from the US. That’s an impressive amount considering the entire airline serves just under 100 destinations, albeit many of them smaller cities throughout Europe. Alitalia is a member of the SkyTeam alliance, which includes US carrier Delta along with Air France, KLM, Korean Air and others.
Chapter 15 of the US bankruptcy code provides protection for foreign entities operating in the United States — Alitalia currently has 36 employees in the US. The next hearing in the case is scheduled for June 26. In the meantime, if you’re holding tickets on Alitalia, you should be safe in the short term, though it may not be a good choice for longer range planning.
H/T: Live and Let’s Fly
Featured image courtesy of ANDREAS SOLARO/AFP/Getty Images.
Welcome to The Points Guy!
Earn 90,000 bonus miles and 10,000 Medallion® Qualification Miles (MQMs) after you spend $3,000 in purchases on your new card in the first three months of card membership. Offer ends 11/10/2021.
With Status Boost™, earn 10,000 Medallion Qualification Miles (MQMs) after you spend $25,000 in purchases on your Card in a calendar year, up to two times per year getting you closer to Medallion Status. Earn 3X Miles on Delta purchases and purchases made directly with hotels, 2X Miles at restaurants and at U.S. supermarkets and earn 1X Mile on all other eligible purchases. Terms Apply.
- Limited Time Offer: Earn 90,000 Bonus Miles and 10,000 Medallion® Qualification Miles (MQMs) after you spend $3,000 in purchases on your new Card in your first 3 months. Offer expires 11/10/2021.
- Earn up to 20,000 Medallion® Qualification Miles (MQMs) with Status Boost® per year. After you spend $25,000 in purchases on your Card in a calendar year, you can earn 10,000 MQMs two times per year, getting you closer to Medallion® Status. MQMs are used to determine Medallion® Status and are different than miles you earn toward flights.
- Earn 3X Miles on Delta purchases and purchases made directly with hotels.
- Earn 2X Miles at restaurants worldwide, including takeout and delivery and at U.S. supermarkets.
- Earn 1X Miles on all other eligible purchases.
- Receive a Domestic Main Cabin round-trip companion certificate each year upon renewal of your Card. *Payment of the government imposed taxes and fees of no more than $75 for roundtrip domestic flights (for itineraries with up to four flight segments) is required. Baggage charges and other restrictions apply. See terms and conditions for details.
- Enjoy your first checked bag free on Delta flights.
- Fee Credit for Global Entry or TSA Pre✓®.
- Enjoy an exclusive rate of $39 per person per visit to enter the Delta Sky Club® for you and up to two guests when traveling on a Delta flight.
- No Foreign Transaction Fees.
- $250 Annual Fee.
- Terms Apply.
- See Rates & Fees