Tel Aviv District Court ordered a stay of proceedings yesterday for Alitalia airline in Israel. Judge Alshech dedicated a large portion of her decision to criticism of the Israel Airports Authority, which argued against the stay of legal proceedings, and would have allowed the authority to continue to press civil charges against the airline. In arguing against a stay of legal proceedings, the authority seemed to have sought its own gain, regardless of possible damage sustained by other creditors, and even itself, Judge Alschech said. In its arguments, the authority minimized Alitalia's financial condition in light of its continuing operation of regular flights.
Italian courts declared Alitalia insolvent in September of this year due to debts of more than 2.8 billion euro, but Italian courts have allowed the airline to continue operating flights in hopes of rehabilitating the company and have implemented a stay of legal proceedings against it until at least mid-December.
The IAA said that it may appeal. "The IAA is committed to its financial stability. It takes, and will continue to take, all legal measures at its disposal to ensure that it receives money that is due to it." The stay of proceedings will remain in force until mid-January.
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