Alitalia will lay off over 2,000 remaining employees as liquidation nears

ROME (AP) — Italy’s former national carrier Alitalia has started procedures for the collective dismissal of its remaining 2,059 employees, its administrators told unions.

The move comes as the successor to bankrupt Alitalia, ITA Airways, faces hurdles in its merger plans with German Lufthansa.

According to Italian media reports, merger talks stalled after the Italian Economy Ministry refused Lufthansa’s suggestions to adjust the price for a 41% stake in ITA Airways.

Lufthansa is arguing that the government-owned Italian airline would lose value due to its poor performance in the fourth quarter of the year.