Alitalia is technically insolvent
The Italian government has given Alitalia unions one more day to agree a rescue plan with investors group CAI.
The newly commissioned administrator of the airline had previously said that if a deal could not be reached then it would liquidate all its assets.
Despite round the clock discussions, talks broke down overnight and there are no plans for them to start again.
Government said it was committed to avoid "irreversible acts" and extended the deadline to the end of Friday.
