The former Italian national carrier, Alitalia, has initiated collective dismissal procedures for its remaining 2,059 employees, as reported by administrators to the airline unions. This final round of layoffs will affect over 1,100 flight attendants and 82 pilots, set to take effect in January.
This move comes as ITA Airways, Alitalia’s successor, faces hurdles in its merger discussions with German airline Lufthansa. According to Italian media, negotiations have stalled following the Italian Ministry of Economy’s rejection of Lufthansa’s proposal to adjust the price for a 41% stake in ITA Airways. Lufthansa argues that ITA, a government-owned airline, has seen a decline in value due to its poor performance in the fourth quarter.
Lufthansa affirmed that it would uphold the terms of the 2023 contract regarding its investment in ITA, stating that it had “taken necessary corrective actions within the agreed timelines.”
Meanwhile, Alitalia’s liquidation process continues, with layoffs planned to conclude by the end of the year.
