Italian airline stops all flights

Hundreds of airline passengers in Italy have been stranded due to the failure of Alitalia's deal to purchase Sicily-based low-cost carrier Wind Jet.

Wind Jet officially stopped operating flights on Sunday during what is traditionally Italy's peak summer holiday travel period.

Italy's aviation authority has reached a deal with other carriers to take on passengers for an additional fee, but Italian media say some travellers are still stranded, including some 200 in Rome bound for Tel Aviv.

Alitalia says Wind Jet failed to turn over company financial data under an April agreement.

Italy's economic development minister has called a meeting with both companies in Rome on Tuesday.

The situation could affect some 300,000 passengers holding tickets for flights scheduled through until October.