Air Italy, the country's second largest airline, has suspended operations following the decision of its owners to place the company into liquidation.
The decision by Air Italy to suspend operations and go into liquidation was made during a meeting of its shareholders. The airline is currently owned by Alisarda, founded by the Aga Khan and controls 51% of the firm, and Qatar Airways, which has a 49% stake in the company.
Despite the decision, Qatar Airways expressed that it would have been ready to invest more in the airline.
In a statement, it said: "Even with the changing competitive environment and the increasingly difficult market conditions severely impacting the air transport industry, Qatar Airways has continually reaffirmed its commitment, as a minority shareholder, to continue investing in the company."
"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," the airline added.
Air Italy announced that flights from Tuesday through February 25 would be handled by other carriers while those booked after that date will be refunded.
Formerly known as Meridiana, the Sardinia-based Air Italy operated flights throughout Italy and to long-haul destinations including New York, Miami and Los Angeles, as well as direct flights to locations in Africa, including Cairo and Lagos.
Air Italy is the latest European airline negatively impacted by fierce competition and shifting business models. In October 2018, Primera Air ceased operations while German airline Germania filed for bankruptcy in February 2019.
British airline Flybmi has also stopped flying, along with Icelandic budget carrier Wow Air.
The grounding of Boeing's 737 Max plane has also added pressure to the industry, with Air Italy having three 737 Max jets in its fleet. The coronavirus outbreak has also caused numerous airlines to cancel flights to and from China, causing uncertainty into forecasts for the industry.
