Italy’s former national carrier starts dismissing remaining staff as liquidation approaches
Date
11/11/2024 4:47:05 AM
(MENAFN) Italy’s former national carrier, Alitalia, has begun the process of collectively dismissing its remaining 2,059 employees, according to a statement from the airline's administrators to unions. This decision comes as Alitalia's successor, ITA Airways, navigates difficulties in its proposed merger with German airline Lufthansa. The merger talks have hit a roadblock after the Italian Economy Ministry rejected Lufthansa’s request to reduce the price for a 41 percent stake in ITA Airways. Lufthansa argued that ITA Airways would lose value due to the airline’s underperformance in the final quarter of the year.
Lufthansa, however, has stated that it will honor the terms agreed upon in 2023 for its investment in ITA Airways, including a "remedy package" that was signed by the specified deadline. Despite these assurances, Alitalia, which is currently under special administration and heading towards liquidation, is moving forward with its plan to lay off its remaining workforce by the end of the year. The cuts will include over 1,100 flight attendants and 82 pilots, with the layoffs set to take effect in January, as communicated in a letter to the unions this past week.
This marks the final stage in Alitalia’s decline after its bankruptcy, with ITA Airways struggling to establish a stable future amid ongoing complications in its dealings with Lufthansa. The collective dismissal of Alitalia employees underscores the airline's transition towards liquidation, as the Italian aviation industry faces a period of uncertainty with regard to its restructuring efforts and future airline alliances.
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