Alitalia is to file for extraordinary administration following a meeting of the beleaguered airline's shareholders.
The decision follows the rejection of a restructuring proposal by workers last month.
Etihad Airways and Italian shareholders had been prepared to recapitalise and finance the restructuring, and the airline points out that two-thirds of the structural cost cuts were unrelated to labour.
But Alitalia says the "negative vote" by employees resulted in an "inability" to proceed.
Its board says the airline faces a "serious economic and financial situation" and, given the "impossibility" of finding an alternative strategy, it has opted unanimously for filing for extraordinary administration.
Alitalia says its flight schedules, for the time being, will continue to operate as planned.
Source: Cirium Dashboard