Italian airline Alitalia has gone into administration after the process was today given the green light by the Italian government.
The government has approved a €600m bridging loan to allow the airline to continue operating for around six months.
It comes after workers last week rejected the latest rescue plan aimed at unlocking financing for the group. The plan, to be financed to the tune of €2bn (£1.7bn) by shareholders, would have involved job cuts and salary reductions.
The company said today that it "noted with deep regret the outcome of the referendum among the employees".
"The negative vote has determined the inability to implement the relaunch and restructuring of the company," Alitalia said in a statement.
The Italian government will appoint at least one commissioner to assess whether the company can make a turnaround, or if it would be better to wind it up.
Alitalia said its flight schedule remains unchanged.
The Italian flag-carrier has faced financial pressure for most of its 70-year history, and rarely turns a profit.
In 2008, Air France-KLM took a stake in Alitalia after helping it out of banruptcy, however the group continued to face financial difficulties.
In 2014, Abu Dhabi's Etihad Airways bought into the airline, with both companies planning to use the investment to rejuvenate Alitalia.