Roma. The former national airline of Italy, Alitalia, began the process of collective dismissal of the rest of its 2,059 employees, its administrators informed the unions.
The move comes as the bankrupt company’s successor, ITA Airways, faces hurdles in its merger plans with Germany’s Lufthansa.
According to Italian media reports, merger talks stalled after the Italian Economy Ministry rejected Lufthansa’s proposals to adjust the price for a 41 percent stake in ITA Airways.
Lufthansa argues that the government-owned Italian airline would lose value due to its poor performance in the final quarter of the year.
Lufthansa said it would stick to the terms of the 2023 contract for its investment in ITA, adding that it had “signed the necessary package before the agreed deadline.”
Meanwhile, Alitalia, which is under special administration and moving toward final liquidation, plans to lay off its remaining employees until the end of the year.
The most recent cuts include more than 1,100 flight attendants and 82 pilots and will take effect in January, according to a letter sent last week by management to the airline’s unions.
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