Alitalia has received a six-month life-line from the Italian government as it entered special administration after a dispute with its workers hit an impasse, preventing the airline from raising fresh financing from shareholders.

Directors at the flag carrier, which has received €7bn (£5.9bn) from the state in the past 10 years, decided to trigger the process after workers rejected a plan to cut its 12,500-strong workforce and impose pay cuts.

Unions had managed to negotiate cuts down from 30pc to 8pc and reduce predicted job losses from an initial 2,000.

The plan would have paved the way to a €2bn refinancing by shareholders including the Gulf carrier Etihad, which owns 49pc of Alitalia.

The Italian government last night granted Alitalia a €600m bridge loan for the next six months, and the airline said its flight schedule would continue.

Analysts said it is likely to have been in talks with potential suitors ahead of the announcement that it would enter administration.

Gerald Khoo, transport analyst at Liberum, said there would have “undoubtedly” been efforts to find a buyer before administration proceedings, an announcement he said showed “there are not any takers”.

Mr Khoo said the workforce had “shown a reluctance to reform” and with that being the case, there is “no value in [Alitalia] as a going concern”.