Italian national airline Alitalia has been facing financial difficulties over the past few years. As announced by its administrators, it is now on the precipice of liquidation. By the end of the year, over 2000 employees will face layoffs. It is a sad farewell to the well-known Italian airline.
Alitalia’s bankruptcy background
Established in 1947 as Aerolinee Italiane Internazional, Alitalia became a revered emblem of Italian aviation. It has been facing bankruptcy for the past few years. Many attempts were made to revive the airline but were ultimately unsuccessful. Alitalia officially went bankrupt in October 2021. ITA Airways, a successor company, took over the airline’s previous routes. ITA Airways is currently in the midst of merger plans with airline group Lufthansa.
The national airline was headed towards bankruptcy for various reasons. Low-cost airlines have become a winning model, offering affordable flights all over the continent. Alitalia was too small to rival long-haul airlines and could not compete with the growing short-haul competition.
Alitalia employee layoffs
By December 31, 2024, over 2000 employees will face layoffs including 83 pilots and 1100 flight attendants. The labour unions are striving to delay the layoffs by an additional year. Postponing the layoffs will aid the employees, providing some financial security for an extended period. The unions are also pushing for reintegration and retraining programmes for the employees to aid their transition.
The unions believe that the Italian government is not doing enough to help the former employees, instead focusing on securing the future of ITA Airways.
Antonio Amoroso, the national secretary of the Cub Trasporti union, asserted:
“It seems that the government is more interested in replacing the old workforce with cheaper labor.”
Many employees face uncertain futures. While some employees may have the opportunity to join ITA Airways, many others will not. Entering the new job market will be a difficult transition, particularly for the older employees who have been with Alitalia for many years. The unions continue to push for better protection measures, benefits, and aid in securing new employment.
ITA Airways’ future is uncertain.
The Italian government is working on securing a future for Alitalia’s successor ITA Airways. There is a planned merger with Lufthansa, but negotiations have stalled due to the airline’s proposal to reduce the price of its 41% stake. Lufthansa argues that ITA’s value has decreased, with a poor performance in Q4 2024, leading to the lower offered price.
The Italian Ministry of Economy rejected the proposal, halting the merger. Negotiations continue but the future of ITA remains uncertain.
Do you think the government should play a more active role in ensuring the laid-off employees’ futures?
