Alitalia to shed up to 2 500 workers

Rome - Italian air carrier Alitalia will lose about a fifth of its 12 800-workforce as part of its upcoming alliance with the United Arab Emirates' Etihad Airways, an Italian government minister estimated on Tuesday.

Etihad announced its plan to invest in Alitalia on Sunday. No details were announced, but Italian media reported it would buy just less than 50% of its Italian peer for up to €600m ($815m).

The Etihad tie-up foresees "2 400-2 500" job losses at Alitalia, Labour Minister Giuliano Poletti said in Milan.

He said the figure would be discussed with unions and added that the government was ready to offer welfare schemes for those laid off. Alitalia has not turned a profit since 2002 and needs an international partner to stave off bankruptcy.

In the first nine months of 2013 it made a pre-tax loss of €162m, up from €119m in the same period of 2012.

The company's board was due to meet on Friday to discuss Etihad's offer and to approve full-year 2013 results.