Alitalia's unions and an Italian investor group have suspended talks over a bail-out of the airline, with the unions citing 'insurmountable difficulties'.
The unions said they would restart talks, which had carried on late into the night, later on Friday to try to reach an agreement on the rescue plan for the airline whose operations are being overseen by a bankruptcy commissioner.
Labour Minister Maurizio Sacconi told reporters the state of the talks 'makes us fear the worst'.
The unions have been told that workers' contracts will be terminated and the airline shut down if talks fail. Should talks fail to reach an agreement, the bankruptcy commissioner has threatened to liquidate all the assets.