ROME (AP) — Italy’s former national airline Alitalia has initiated procedures for the collective dismissal of its remaining 2,059 employees, executives told unions.
The move comes as bankrupt Alitalia’s successor, ITA Airways, faces hurdles in its merger plans with Germany’s Lufthansa.
According to Italian media reports, merger talks stalled after Italy’s Economy Ministry rejected Lufthansa’s suggestions to adjust the price for a 41% stake in ITA Airways.
Lufthansa said the government-owned Italian airline would lose value due to poor performance in the fourth quarter of the year.
Lufthansa said it would adhere to the terms of the 2023 contract for its investment in ITA, adding that it had “signed the necessary package of measures within the agreed deadline.”
Meanwhile, Alitalia, which is under special administration and heading for final liquidation, plans to lay off its remaining employees until the end of the year.
The final cuts include more than 1,100 flight attendants and 82 pilots and will come into effect in January, according to a letter the government sent to aviation unions last week.
