Alitalia management are holding an emergency board meeting after the chairman quit amid the collapse of takeover talks with Air France-KLM.
Italian airline Alitalia has announced a new chairman, after takeover talks with Air France-KLM collapsed.
Maurizio Prato stood down after the breakdown of talks between Alitalia's unions and Air France-KLM management.
The firm said Aristide Police would take over the position a day after Maurizio Prato resigned when talks to reach agreement with unions failed.
He had warned the unions that Alitalia risked going bankrupt if they did not accept the deal.
The appointment was made after a day's emergency board meeting. The firm said it would inform the government by April 8 if it could survive.
Italy's government said it would investigate whether the takeover could still be salvaged.
Mr Prato had warned unions that the firm risked going bankrupt.
The Italian cabinet was due to discuss the crisis on Thursday.
Alitalia said even though the deadline has passed the board was still looking at the takeover offer in order to assure the firm's profitability.
Shares suspended
Trading in Alitalia shares was suspended on Thursday.
"This company is cursed: only an exorcist can save it," Mr Prato was quoted by unions as saying after the negotiations collapsed.
This is a very dire situation Erika Young, FILT-CGIL union
The Italian government has been trying for more than a year to sell its 49.9% stake in the troubled national airline and says there are no other bidders.
The collapse in negotiations leaves the state-owned airline on the ropes just 11 days before a general election.
The government's sale of Alitalia has been opposed by prime ministerial candidate Silvio Berlusconi.
'Dire situation'
Unions had objected to the expected loss of 2,100 jobs under the takeover plans.
FILT-CGIL, the largest of nine unions representing Alitalia workers blamed Air France-KLM's chairman Jean-Cyril Spinetta, for the collapse of takeover talks.
Meanwhile the final straw for Air France-KLM appeared to be a last minute attempt from unions to broker a side deal with an unidentified Italian company.
The union defended its tactics: "It was a proposal by an Italian company to inject more cash into (Alitalia) and therefore give the company a better future, more investment and a relaunch," Erika Young, international officer for FILT-CGIL, told the BBC's World Business Report
Air France-KLM has twice agreed to extend the deadline for a deal to take over the cash-strapped airline and increased its offer to 139m euros.
"This is a very dire situation," Ms Young said.
"We are still state-owned and therefore it's the government's responsibility to tell us now what they intend to do and how they intend to keep the Italian flag carrier afloat."
Administration risk
On Wednesday, Economy Minister Tommaso Padoa-Schioppa said the only alternative to the Air France-KLM offer would be to put Alitalia into emergency administration.
He also said a 300m euro ($470m; £236m) state bridging loan to Alitalia would be impossible unless the Air France-KLM deal was signed.
Air France-KLM's offer to buy Alitalia for 0.10 euros per share would have needed union backing to go ahead.
