Italian airline Alitalia could be split into three units as part of the rescue, Bloomberg News reports, citing the newspaper Corriere della Sera.

The company's three new units would be in aviation, ground services and maintenance. According to the newspaper, 5,000 jobs could also disappear within Alitalia, while the state industrial fund, Invitalia, could be forced to inject capital.

The deadline for a consortium led by state-owned railway company Ferrovie to submit a bid recently expired. The consortium withdrew its bid after a year of negotiations.

Reuters recently reported that the government has given Alitalia 400 million euros in aid, enough to keep it afloat until the end of the year. If Alitalia goes under, 11,600 jobs could be lost.

Source: finwire