Alitalia to Lay Off Over 2,000 Remaining Employees as Liquidation Nears

Alitalia, Italy’s former national airline, has initiated procedures for the collective dismissal of its remaining 2,059 employees as it approaches final liquidation.

The announcement was made by the airline’s administrators to union representatives, marking another significant step toward the end of its operations.

The layoffs, which include more than 1,100 flight attendants and 82 pilots, will take effect by the end of January 2024. These cuts are part of Alitalia’s ongoing closure process, as the airline has been under special administration for several years following its bankruptcy.

The timing of the job losses coincides with challenges faced by ITA Airways, the airline that succeeded Alitalia after its collapse. ITA Airways is currently in talks with German airline Lufthansa for a potential merger, but those discussions have hit a roadblock. Reports indicate that negotiations stalled after the Italian Economy Ministry rejected Lufthansa’s proposal to reduce the price for a 41% stake in ITA Airways. Lufthansa has raised concerns that ITA’s value may decrease due to its underperformance in the fourth quarter of 2023. Despite this setback, Lufthansa has reiterated its commitment to the agreed investment terms for ITA Airways.

With input from the Associated Press.