Air Lib files for bankruptcy

Air Lib has struggled since it was created in 2001

Troubled French airline Air Lib has filed for bankruptcy after its planes were seized and it failed to reach a bail-out agreement.

The French commercial court said in a statement it would review the case on Monday with interested parties before deciding if the airline should be given more time or liquidated.

On Monday, airport operator Aeroports de Paris seized 11 Air Lib aircraft in lieu of unpaid landing fees after France's second largest carrier lost its operating licence last week and had its fleet grounded.

Last Thursday talks with Dutch shipping and property firm IMCA for a financial rescue package failed.

Air Lib has been struggling to stay afloat since it was created in 2001 from the French operations of collapsed Swissair.

Financial trouble

But it ran into trouble when the French government stopped subsidising the airline and insisted it repay loans of 100m euros.

About 3,200 employees could lose their jobs.

On Monday, French riot police fired tear gas inside Paris' Orly airport - where the airline is based - to stop about 1,000 Air Lib workers reaching the runway during a protest.

Air Lib flew to the Algeria, Cuba, French Antilles and a number of European and French destinations.