The Alitalia airline, now in liquidation, issued a formal letter to the government and the unions to announce that a procedure has begun to determine staff reductions and potential dismissals. Local media reported that more than 2,700 workers are affected. The count includes 2,668 Alitalia employees tied to temporary employment arrangements, and 55 staff at its regional subsidiary Alitalia CityLiner in a similar situation. These numbers underscore the scale of the restructuring underway as the company winds down its operations after years of efforts to resume service.
Only 172 positions are being retained to support the final phase of the liquidation. Those roles remain under an emergency regime because they are essential to the liquidation process, which began in 2021 following several unsuccessful attempts to restart activities. The company’s letter comes after the government formally informed the European Commission about the plan to allow Lufthansa to enter Ita Airways, effectively creating a new airline born from Alitalia’s legacy assets and routes. This state-backed arrangement has been a subject of intense scrutiny and negotiation across European aviation circles and among worker representatives.
The Lufthansa deal, finalized earlier, involved Lufthansa committing to acquire a stake and to support the Italian state in the capital structure of Ita Airways. The arrangement marked a pivotal shift in Italy’s aviation landscape, with Lufthansa moving to hold a significant share in what was intended to be a stronger, more competitive Italian carrier. The capital intensity of the operation and the long-term viability of Ita Airways were central themes as authorities weighed the strategic value of keeping a robust national airline in the market.
In the communication, Alitalia explains that rehiring workers is not currently possible due to a situation of staff surplus and the fact that relocation processes have not yet been completed. The letter notes that there are no longer any legal or negotiable documents that could be used to address excess staff outside of the measures already planned. It emphasizes that current operating conditions do not allow for other arrangements such as flexible scheduling or alternative work arrangements that might mitigate job losses. This reflects the tension between winding down a legacy carrier and preserving livelihoods for a substantial workforce during a period of corporate transition.
Historically, Alitalia faced bankruptcy proceedings in 2017, after which it continued to operate for a time as a carrier before ultimately ceasing core operations. The liquidation phase became more pronounced in late 2021, as the company focused on orderly wind-down procedures and mitigating social impact. At that point, thousands of workers faced unemployment as the business moved toward closure, highlighting the broader implications for employees, regional economies, and the aviation network that depended on the Italian flag carrier. The current developments illustrate how national governments, EU regulators, and industry players navigate the complex process of restructuring in a highly regulated, highly interconnected sector, with social considerations front and center for affected workers and their families. This situation remains a focal point for observers tracking airline consolidation, labor markets, and the policy responses that accompany large-scale corporate dissolution.