Italian budget carrier Wind Jet risks a possible operating licence suspension by the country's civil aviation regulator after it suspended all of its services on 12 August and left hundreds of passengers stranded.
Italy's civil aviation administration ENAC has since set up a crisis unit to facilitate the rerouting of affected passengers.
Flag carrier Alitalia said last week that discussions to take over the troubled carrier "failed" as Wind Jet did not provide enough documentation of its financial position to enable a clear assessment of the company's value.
The cash-strapped carrier has been cancelling flights and was warned on 10 August by ENAC that it could be forced to suspend its operating licence on 13 August, unless its service reliability improves dramatically.
ENAC has ordered the troubled carrier to provide a detailed contingency plan that will ensure a return to full operations and flight punctuality - using of leased aircraft or booking passengers on other airlines' flights if necessary.
Wind Jet was also instructed to pay off management companies, handlers and service providers. Otherwise, the ENAC has stated that it will not authorise aircraft takeoffs.
The carrier has been told to hold off ticket sales until it restores satisfactory operations.
Wind Jet, which has suspended its website, used to operate a fleet of 11 Airbus A319s and A320s, according to Flightglobal's data.
Source: Air Transport Intelligence news