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The national Italian airline Alitalia appears doomed after investors hoping to save it said they could not return to talks with unions.

The negotiations in Rome stalled overnight, primarily over the issue of redundancies.

Alitalia is already in the hands of the bankruptcy commisioner who had set a deadline of Thursday for a rescue deal to be reached.

The investors group came forward after the proposed sale of the government’s stake to
Air France-KLM fell through.

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