Air Europe suspended operations in December 2008 after Compagnia Aerea Italiana (which was going to take over as the new Alitalia) decided to close down the Air Europe brand. The airline at one time was a subsidiary of the Volare Group; Volare Group had its head office in Thiene, Italy and its commercial management and charter management in Milan.

The airline was established in 1989 and started operations on 19 December 1989. It started off as part of the Airlines of Europe Group based in the United Kingdom, but became wholly Italian owned in 1991. In December 1997 it inaugurated its first scheduled flight to Havana, Cuba.

It eventually became a subsidiary of Volare Airlines. With this partnership, Air Europe became a major domestic and international airline, operating Airbus A320, Boeing 737, Boeing 757, Boeing 767 and Boeing 777 aircraft.

In 2004, however, Volare Group S.p.A. (the holding that controlled Air Europe S.p.A. and Volare Airlines S.p.A.) went bankrupt, and was put up for sale by the Italian Government in December 2004. Alitalia's offer for 38 million euros was the winning bid, however Air One tried to block the sale for various reasons by going to court - this happened five times, and, in fact, so many obstacles were placed in front of Alitalia's acquisition of the group (including Alitalia's financial difficulties), that the affair was considered like a soap-opera by the Italians.

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Wikipedia