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Airline Alitalia collapse

Italian national airline Alitalia has applied for bankruptcy protection as it seeks to restructure and downsize.

Alitalia declared itself insolvent in an Italian court. It had been losing 2m euros (£1.61m) a day due to high oil costs and budget airline competition.

Net debt at the end of July totalled 1.17bn euros. Flights will continue while an administrator is appointed. The firm is set to be split in two.

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