Air Italy grounded – shareholders cite ‘difficult market conditions’

So Air Italy has gone bust. The small carrier’s reputation was greatly enhanced by the involvement of Qatar Airways, a 49% shareholder, which triggered a strong reaction from US carriers. They believed that Qatar was using it to bypass agreements with the US not to develop services there.

Air Italy, something of a minnow with 13 aircraft, said it was “puzzled (but slightly flattered) that the three largest US carriers – which between themselves operate a fleet of more 2,500 aircraft ...