Alitalia, once Italy’s flagship airline, is preparing for the collective dismissal of its last 2,059 employees as the company moves closer to liquidation. The layoff procedures will affect more than 1,100 flight attendants, 82 pilots, and other personnel by January, as per a recent letter from Alitalia's administrators to union representatives.
This decision comes amid ongoing merger challenges for ITA Airways, Alitalia’s successor, which had been in advanced talks with Lufthansa. However, discussions have reportedly stalled following Lufthansa’s request for an adjusted valuation on its planned 41% stake in ITA Airways. Lufthansa argued that ITA’s declining performance in Q4 had impacted the airline's market value.
While Lufthansa indicated it remains committed to the 2023 terms of the agreement, the Italian Economy Ministry’s refusal to renegotiate the stake price has created uncertainty around the merger.
For Alitalia, which has been under special administration, the final layoffs signal the end of its operational legacy. As liquidation proceeds, the administrators have ensured that all job terminations will be finalized by the end of this year, allowing for a complete organizational wind-down.
